Although many practitioners have asserted that Australian superannuation funds are reportable as foreign grantor trusts on IRS Forms 3520 and 3520-A, doing so would subject the gains within the fund to immediate U.S. taxation, which is contrary to IRS guidance. About Form 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts. Additional Items Related to Form 8938. The United States Internal Revenue Service says that a gift is "Any transfer to an individual, either directly or indirectly, where full compensation (measured in money or money's worth) is not received in return.". Clearly, when IRC 6048 and form 3520 were introduced, it was not with the goal of requiring a foreign employment trust to be included in the mandatory reporting regime. FBAR & 8398 Duplicate Reporting RRSP and RRIF are required to be reported on the FinCEN Form 114 (FBAR) and FATCA Form 8938. The penalties start at $10,000, with a continuing penalty upwards of $50,000. Form 8938 – Statement of Foreign Financial Assets was introduced in 2011 and must be filed by anyone with significant assets outside of the United States. About Form 3520-A, Annual Information Return of Foreign Trust With a U.S. It was first introduced as a reporting requirement for U.S. taxpayers in 2012 on their 2011 tax return, IRS Form 8938. Form 3520 is generally used to report transfers to an offshore trust. Some clients preferred to report the 3520 and 3520-A as a safety precaution — which we completely understand — but the IRS has now brought some clarity with the recently introduced Rev. Information about Form 5471, Information Return of U.S. EXECUTIVE SUMMARY : Streamlined filing compliance procedures, introduced in 2012 for individuals residing outside the United States and in 2014 revised and expanded to also apply to taxpayers inside the United States, offer a potentially easier and less expensive alternative to the Offshore Voluntary Disclosure Program (OVDP) for qualifying taxpayers who wish to disclose … If you are required to file a Form 8938 and you have a specified foreign financial asset reported on Form 3520, Form 3520-A, Form 5471, Form 8621, Form 8865, or Form 8891, you do not need to report the asset on Form 8938. Owner. File Form 5471 to satisfy the reporting requirements of sections 6038 and 6046, and the related regulations. By attaching it to Form 1040, the taxpayer was making the election under the treaty to treat an RRSP or RRIF as a pension for both U.S. and Canadian tax purposes and was relieved of the Form 3520-A and Form 3520 filing requirements. Help improve IRS.gov Participate in a usability study to improve our design. Form 3520 Gift Form 8938 and; PFIC Form 8621 (if applicable). If a U.S. taxpayer is an owner of a non-resident trust, Form 3520-A, “Annual Information Return of Foreign Trust With a U.S. Owner”, is required to be filed 2 ½ months after the trust’s year end. Proc. The Form 1040 Checkbox Initiative, introduced in 2000, enables taxpayers to authorize their paid return preparers to work with the IRS to resolve any processing-related problems with respect to their returns. Form 3520, Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts Form 3520-A, Annual Information Return of Foreign Trust with a US Owner TFSAs originated in 2009 so, by now, the 2009 and 2010 Form 3520-A are past their respective March 15, 2010 and 2011 deadlines. Persons With Respect To Certain Foreign Corporations, including recent updates, related forms, and instructions on how to file. Form 3520 provides information about the owner(s) of the trust and the trust itself. When a taxable gift in the form of cash, stocks, real estate, or other tangible … Over the past year, we have found that significantly more taxpayers have been hit with Form 8938 non-compliance penalties. Form 926 can be required if you transfer property into a foreign corporation owned by your trust. A gift tax is a tax imposed on the transfer of ownership of property during the giver's life. 2020-17. 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