1040-US: Filing requirements for Forms 3520 and 3520-A

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Question

What are the filing requirements for Forms 3520 and 3520-A for an individual?

Answer

For an individual, the filing requirements for Form 3520 include any of the following:

An individual does not have a true filing requirement for Form 3520-A, which is to be filed by a foreign trust with a U.S. owner. However, if the foreign trust fails to file Form 3520-A, then the U.S. owner must attach a substitute Form 3520-A for the foreign trust to Form 3520 in order to avoid a penalty equal to the greater of $10,000 or 5 percent of the gross value of trust assets owned, in addition to failure to file penalties. Thus, when Form 3520, Part II, Line 22 is answered ‘No’, the tax application automatically includes Form 3520-A as an attachment to Form 3520.

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

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