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Question

What are the effects of answering Yes or No on Form 3520, line 3?

Answer

The preparation of Form 3520 is affected by whether or not a U.S. person is designated to act as the authorized U.S. agent for the foreign trust. This designation appears in line 3 on Form 3520.

If the answer for line 3 is Yes, enter the agent’s information in the statement dialog for the U.S. agent field in Screen 3520. If you attached the U.S. agent authorization form to the return, also mark the Attach U.S. agent authorization form? field.

If the answer for line 3 is No, then complete lines 15-18 on Form 3520 as follows.

• In Screen 3520, complete the statement dialogs attached to the following fields: Beneficiaries, Other persons with trust powers, and Trustees.
• In the Attaching copy of fields, indicate which documents are (or are not) attached and whether any were attached to a previously filed Form 3520.
• Attach any required documentation to the return as described in Attaching Portable Document Format (PDF) files to electronic files.

For additional information, refer to the Form 3520 instructions. For information about how to authorize a U.S. agent for a foreign trust, refer to the Form 3520 or 3520-A instructions.

Related topic: Form 3520 - Foreign Trust Transactions FAQs (1040)

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