3520 Annual Return to Report Transactions with Foreign Trusts

Form

3520

(Rev. December 2023)
Department of the Treasury
Internal Revenue Service

Annual Return To Report Transactions With
Foreign Trusts and Receipt of Certain Foreign Gifts

OMB No. 1545-0159

Go to www.irs.gov/Form3520 for instructions and the latest information.

Note: All information must be in English. Show all amounts in U.S. dollars. File a separate Form 3520 for each foreign trust.
For calendar year 20
, or tax year beginning
A Check appropriate boxes:
Initial return
B Check box that applies to person filing return:
C

, 20
, ending
Amended return
Partnership
Corporation

Final return
Individual

Check if any excepted specified foreign financial assets are reported on this form. See instructions .

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, 20

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Trust
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Executor
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Check all applicable boxes. See applicable instructions.
You are (a) a U.S. transferor who, directly or indirectly, transferred money or other property during the current tax year to a foreign trust; (b) a U.S.
person who (1) during the current tax year, transferred property (including cash) to a related foreign trust (or a person related to the trust) in
exchange for an obligation, or (2) holds a qualified obligation from the trust that is currently outstanding; or (c) the executor of the estate of a U.S.
decedent and (1) the decedent made a transfer to a foreign trust by reason of death, (2) the decedent was treated as the owner of any portion of a
foreign trust immediately prior to death, or (3) the decedent’s estate included any portion of the assets of a foreign trust. Complete all applicable
identifying information requested below and Part I of the form.
You are a U.S. owner of all or any portion of a foreign trust at any time during the tax year. Complete all applicable identifying information
requested below and Part II of the form.
You are (a) a U.S. person (including a U.S. owner) or an executor of the estate of a U.S. person who, during the current tax year, received, directly
or indirectly, a distribution from a foreign trust; (b) a U.S. person who is a U.S. owner or beneficiary of a foreign trust and in the current tax year,
you or a U.S. person related to you received (1) a loan of cash or marketable securities, directly or indirectly, from such foreign trust, or (2) the
uncompensated use of trust property; or (c) a U.S. person who is a U.S. owner or beneficiary of a foreign trust and in the current tax year such
foreign trust holds an outstanding qualified obligation of yours or a U.S. person related to you. Complete all applicable identifying information
requested below and Part III of the form.
You are a U.S. person who, during the current tax year, received certain gifts or bequests from a foreign person. Complete all applicable
identifying information requested below and Part IV of the form.
1a

Name of U.S. person(s) with respect to whom this Form 3520 is being filed (see instructions)

b Taxpayer identification number (TIN)

c

Number, street, and room or suite no. If a P.O. box, see instructions.

d Spouse’s TIN

e

City or town

i
j
k

If you are filing with your spouse a current-year joint income tax return and a joint Form 3520, check this box . . . . . . .
If an automatic 2-month extension applies for the U.S. person’s tax return, check this box and attach statement. See instructions .

2a

f State or province

If an extension was requested for the tax return, check this box
Name of foreign trust (if applicable)

c

Number, street, and room or suite no. If a P.O. box, see instructions.

e

City or town

g ZIP or foreign postal code h Country
.
.

and enter the form number of the tax return to be filed:
b Employer identification number (EIN), if any

f State or province

d Date foreign trust was created
g ZIP or foreign postal code h Country

3

Did the foreign trust appoint a U.S. agent (defined in the instructions) who can provide the IRS with all relevant trust information?
If “Yes,” complete lines 3a through 3g. If “No,” and you are required to complete Part I, complete lines 15 through 18.

3a

Name of U.S. agent

Yes

No

b TIN, if any

c

Number, street, and room or suite no. If a P.O. box, see instructions.

d

City or town

4a

.
.

e State or province

Name of U.S. decedent (see instructions)

f ZIP or postal code

b Address

d

Date of death

f

Check applicable box.
U.S. decedent made transfer to a foreign trust by reason of death.

g Country
c TIN of decedent
e EIN of estate

U.S. decedent treated as owner of foreign trust immediately prior to death.
Assets of foreign trust were included in estate of U.S. decedent.
For Paperwork Reduction Act Notice, see separate instructions.

Cat. No. 56398R

Form 3520 (Rev. 12-2023)

Page 2

Form 3520 (Rev. 12-2023)

Part I

Transfers by U.S. Persons to a Foreign Trust During the Current Tax Year (see instructions)

5a

Name of trust creator

b Address

6a

Country code of country where trust was created

b Country code of country whose law governs the trust c Date trust was created

7a

Will any person (other than the foreign trust) be treated as the owner of the transferred assets after the transfer? .
(i)
Name of foreign
trust owner

b

c TIN, if any

(ii)
Address

(iii)
Country of residence

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.

Yes

No

(v)
Relevant Code
section

(iv)
TIN, if any

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Yes

No

9a
b
10

Now or at any time in the future, can any part of the income or corpus of the trust benefit any U.S. beneficiary?
If “No,” could the trust be revised or amended to benefit a U.S. beneficiary?
. . . . . . . . . .
Reserved for future use . . . . . . . . . . . . . . . . . . . . . . . . . .

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Yes
Yes

No
No

Yes

No

11a

During the current tax year, did you transfer property (including cash) to a related foreign trust in exchange for an obligation
of the trust or an obligation of a person related to the trust? See instructions . . . . . . . . . . . . . .
If “Yes,” complete the rest of Schedule A, as applicable. If “No,” go to Schedule B.

Yes

No

b

Were any of the obligations you received (with respect to a transfer described in line 11a above) qualified obligations? . .
If “Yes,” complete the rest of Schedule A and attach a copy of each loan document entered into with respect to each
qualified obligation reported on line 11b. If these documents have been attached to a Form 3520 filed within the previous 3
years, attach only relevant updates.
If “No,” go to Schedule B.

Yes

No

8

Was the transfer a completed gift or bequest? If “Yes,” see instructions .

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Schedule A—Obligations of a Related Trust (see instructions)

(i)
Date of transfer giving rise to obligation

12

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(ii)
Maximum term

(iii)
Yield to maturity

(iv)
FMV of obligation

With respect to each qualified obligation you reported on line 11b, do you agree to extend the period of assessment of any
income or transfer tax attributable to the transfer, and any consequential income tax changes for each year that the
obligation is outstanding, to a date 3 years after the maturity date of the obligation? . . . . . . . . . . . .

Yes

No

Yes

No

Note: You have the right to refuse to extend the period of limitations or limit this extension to a mutually agreed-upon
issue(s) or mutually agreed-upon period of time. Generally, if you refuse to extend the period of limitations with respect to
each qualified obligation you reported on line 11b, then such obligation is not a qualified obligation and you cannot check
“Yes” to the question on line 11b.

Schedule B—Gratuitous Transfers (see instructions)
13

During the current tax year, did you make any transfers (directly or indirectly) to the trust and receive less than FMV, or no
consideration at all, for the property transferred?
. . . . . . . . . . . . . . . . . . . . . .
If “Yes,” complete columns (a) through (i) below and the rest of Schedule B, as applicable. When completing columns (a)
through (i) with respect to each nonqualified obligation, enter -0- in column (h).
If “No,” go to Schedule C.

(a)
Date of
transfer

(b)
Description
of property
transferred

(c)
FMV of property
transferred

(d)
U.S. adjusted
basis of
property
transferred

(e)
Gain recognized
at time of
transfer,
if any

Totals
14

a
b
c

(f)
Excess, if any,
of column (c)
over the sum of
columns (d) and (e)

(g)
Description
of property
received,
if any

(h)
FMV of property
received

$

(i)
Excess of
column (c) over
column (h)

$

If you have a sale or loan document in connection with a transfer reported on line 13, complete 14a through 14c and attach the relevant
document(s). If these documents have been attached to a Form 3520 filed within the previous 3 years, attach only relevant updates.
Are you attaching a copy of any of the following?
Sale document
. . . . . . . . . . . .
Loan document . . . . . . . . . . . .
Subsequent variances to original sale or loan documents

Yes
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No

Attached
Previously

Year
Attached

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Form 3520 (Rev. 12-2023)

Page 3

Form 3520 (Rev. 12-2023)

Part I

Schedule B—Gratuitous Transfers (continued)

Note: Complete lines 15 through 18 only if you are required to complete Part I and answered “No” to line 3, acknowledging that the foreign trust did
not appoint a U.S. agent to provide the IRS with all relevant trust information.
15

(a)
Name of beneficiary

(b)
Address of beneficiary

(c)
U.S. beneficiary?
Yes

16

(a)
Name of trustee

17

(a)
Name of other person
with trust powers

18

(d)
TIN, if any

No

(b)
Address of trustee

(c)
TIN, if any

(b)
Address of other person with trust powers

(c)
Description of powers

(d)
TIN, if any

If you checked “No” on line 3, you are required to attach a copy of all trust documents as indicated below. If these documents have been
attached to a Form 3520-A or Form 3520 filed within the previous 3 years, attach only relevant updates.

a
b
c
d
e
f

Are you attaching a copy of any of the following?
Summary of all written and oral agreements and understandings relating to the trust
Trust instrument . . . . . . . . . . . . . . . . . . . .
Memoranda or letters of wishes . . . . . . . . . . . . . . . .
Subsequent variances to original trust documents . . . . . . . . . .
Trust financial statements . . . . . . . . . . . . . . . . .
Organizational chart and other trust documents . . . . . . . . . . .

Yes
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No

Attached
Previously

Year
Attached

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Schedule C—Qualified Obligations Outstanding in the Current Tax Year (see instructions)
19

Did you, at any time during your tax year, hold an outstanding obligation of a related foreign trust (or a person related to the
trust) that you reported as a qualified obligation in the current tax year? . . . . . . . . . . . . . . . .
If “Yes,” complete columns (a) through (f) below for each obligation.
(a)
Date of original
obligation

(b)
Tax year qualified
obligation first reported

(c)
Amount of principal
payments made during
your tax year

(d)
Amount of interest
payments made during
your tax year

(e)
Balance of the outstanding
obligation at the end
of the tax year

Yes

No

(f)
Does the obligation
still meet the
criteria for a
qualified obligation?
Yes

No

Form 3520 (Rev. 12-2023)

Page 4

Form 3520 (Rev. 12-2023)

Part II

U.S. Owner of a Foreign Trust (see instructions)
(a)
Name of foreign
trust owner

20

(b)
Address

(c)
Country of tax residence

(e)
Relevant Code
section

(d)
TIN, if any

21a

Country code of country where foreign trust was created b Country code of country whose law governs the trust c Date foreign trust was created

22

Did the foreign trust file Form 3520-A for the current tax year? . . . . . . . . . . . . . . . .
If “Yes,” attach the Foreign Grantor Trust Owner Statement you received from the foreign trust.
If “No,” to the best of your ability, complete and attach a substitute Form 3520-A for the foreign trust.
See instructions for information on penalties for failing to complete and attach a substitute Form 3520-A.
Enter the gross value of the portion of the foreign trust that you are treated as owning at the end of your tax year .

23

Part III

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$

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Yes

No

Distributions to a U.S. Person From a Foreign Trust During the Current Tax Year (see instructions)

Note: If you received an amount from a portion of a foreign trust of which you are treated as the owner, only complete lines 24 and 27.
24

Enter cash amounts or FMV of property received, directly or indirectly, during your current tax year, from the foreign trust (exclude loans and
uncompensated use of trust property included on line 25).

(a)
Date of distribution

Total

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(c)
FMV of property received
(determined on date
of distribution)

(b)
Description of property received

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(d)
Description of property
transferred, if any

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(e)
FMV of property
transferred

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(f)
Excess of column (c)
over column (e)

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$

25 During your current tax year, did you (or a person related to you) receive a loan or uncompensated use of trust property from a
related foreign trust (including an extension of credit upon the purchase of property from the trust)? . . . . . . . .
If “Yes,” complete columns (a) through (g) below for each such loan or use of trust property.
Note: See instructions for additional information, including how to complete columns (a) through (g) for use of trust property.
(a)
FMV of loan proceeds
or property

Total

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(c)
Maximum term of
repayment of
obligation

(b)
Date of original
transaction

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(e)
Is the obligation a
qualified obligation?

(d)
Interest rate
of obligation

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Yes

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No

(g)
Amount treated as
distribution from the trust
(subtract column (f)
from column (a))

(f)
FMV of qualified
obligation

No

Yes

.

$

26 With respect to each obligation you reported as a qualified obligation on line 25, do you agree to extend the period of
assessment of any income or transfer tax attributable to the transaction, and any consequential income tax changes for each
year that the obligation is outstanding, to a date 3 years after the maturity date of the obligation? . . . . . . . . .

Yes

No

Yes

No

Note: You have the right to refuse to extend the period of limitations or limit this extension to a mutually agreed-upon issue(s)
or mutually agreed-upon period of time. Generally, if you refuse to extend the period of limitations with respect to an obligation
that you reported as a qualified obligation on line 25, then such obligation is not a qualified obligation and you cannot check
“Yes” in column (e) of line 25.
27 Total distributions received during your current tax year. Add line 24, column (f), and line 25, column (g) .

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$

28 Did the trust, at any time during the current tax year, hold an outstanding obligation of yours (or a person related to you) that
you reported as a qualified obligation? . . . . . . . . . . . . . . . . . . . . . . . . . .
If “Yes,” complete columns (a) through (f) below for each obligation.
(a)
Date of original
loan transaction

(b)
Tax year qualified
obligation first
reported

(c)
Amount of principal payments
made during your tax year

(d)
Amount of interest payments
made during your tax year

(e)
Balance of the outstanding
obligation at the end
of the tax year

(f)
Does the loan still
meet the criteria of a
qualified obligation?
Yes

No

Form 3520 (Rev. 12-2023)

Page 5

Form 3520 (Rev. 12-2023)

Part III
29

Distributions to a U.S. Person From a Foreign Trust During the Current Tax Year (continued)

Did you receive a Foreign Grantor Trust Beneficiary Statement from the foreign trust with respect to a distribution?

Yes

No

N/A

Yes

No

N/A

If “Yes,” attach the statement and do not complete the remainder of Part III with respect to that distribution.
If “No,” complete Schedule A with respect to that distribution. Also, complete Schedule C if you enter an amount
greater than zero on line 37.
If a foreign non-grantor trust, check “N/A.”
30

Did you receive a Foreign Nongrantor Trust Beneficiary Statement from the foreign trust with respect to a distribution?
If “Yes,” attach the statement and complete either Schedule A or Schedule B below. See instructions. Also, complete
Schedule C if you enter an amount greater than zero on line 37 or line 41a.
If “No,” complete Schedule A with respect to that distribution. Also, complete Schedule C if you enter an amount
greater than zero on line 37.
If a foreign grantor trust, check “N/A.”

Schedule A—Default Calculation of Trust Distributions (see instructions)
31
32

31

Enter amount from line 27 . . . . . . . . . . . . . . . . . . . . . . . . .
Number of years the trust has been a foreign trust, including the current tax year
(see instructions) . . . . . . . . . . . . . . . . . . .
32
Enter total distributions received from the foreign trust during the 3 preceding tax years (or during the number
of years the trust has been a foreign trust, if fewer than 3 years, but excluding the current tax year) . . . .

33

33
34

34
35

Multiply line 33 by 1.25 . . . . . . . . . . . . . . . . . . . . . . . . . .
Average distribution. Divide line 34 by 3.0 (or the number of years the trust has been a foreign trust, if fewer
than 3 years, but excluding the current tax year) and enter the result . . . . . . . . . . . . .

36
37
38

Amount treated as ordinary income earned in the current tax year. Enter the smaller of line 31 or line 35

39

Enter amount from line 27

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39

40a
b
41a

Amount treated as ordinary income in the current tax year . . . . . . . . . .
Qualified dividends . . . . . . . . . . . . . . . . . .
40b
Amount treated as accumulation distribution. If zero, do not complete Schedule C below .

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40a

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41a

b
42a
b

Amount of line 41a that is tax exempt . . . . . . . . . .
Amount treated as net short-term capital gain in the current tax year .
Amount treated as net long-term capital gain in the current tax year .

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42a
42b

28% rate gain . . . . . . . . . . .
Unrecaptured section 1250 gain
. . . . .
Amount treated as distribution from trust corpus .
Enter any other distributed amount received from
and 43. (Attach explanation.)
. . . . . .

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not
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42c
. . .
42d
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included on lines 40a, 41a, 42a, 42b,
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35
36
37

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Amount treated as accumulation distribution. Subtract line 36 from line 31. If zero, do not complete the rest of Part III
Applicable number of years of trust. Divide line 32 by 2.0 and enter the result here
38

Schedule B—Actual Calculation of Trust Distributions (see instructions)

c
d
43
44

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the
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foreign trust
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41b
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43

45

Amount of foreign trust’s aggregate undistributed net income .

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44
45

46
47

Amount of foreign trust’s weighted undistributed net income . . . . . . . .
Applicable number of years of trust. Divide line 46 by line 45 and enter the result
here . . . . . . . . . . . . . . . . . . . . . . .
47

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46

48
49
50

Enter accumulation distribution from line 37 or line 41a, as applicable
. . . . . . . . . . . .
Enter tax on total accumulation distribution from line 28 of Form 4970. (Attach Form 4970—see instructions.) .
Enter applicable number of years of foreign trust from line 38 or line 47, as
applicable (round to nearest half year) . . . . . . . . . . . . .
50

48
49

51

Combined interest rate imposed on the total accumulation distribution (see instructions) .

51

52
53

Interest charge. Multiply the amount on line 49 by the combined interest rate on line 51 . . . . . . .
Tax attributable to accumulation distributions. Add lines 49 and 52. Enter here and as “additional tax” on your
income tax return . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Schedule C—Calculation of Interest Charge (see instructions)

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53

Form 3520 (Rev. 12-2023)

Page 6

Form 3520 (Rev. 12-2023)

Part IV
54

U.S. Recipients of Gifts or Bequests Received During the Current Tax Year From Foreign Persons (see instructions)

During your current tax year, did you receive more than $100,000 that you treated as gifts or bequests from a nonresident
alien (including a distribution received from a domestic trust treated as owned by a foreign person) or a foreign estate? See
instructions for special rules regarding related donors . . . . . . . . . . . . . . . . . . . . .

Yes

No

If “Yes,” complete columns (a) through (c) with respect to each such gift or bequest in excess of $5,000. If more space is
needed, attach a statement.
(a)
Date of gift or bequest

Total
55

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(b)
Description of property received

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(c)
FMV of property received

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$

During your current tax year, did you receive amounts from a foreign corporation or a foreign partnership that you treated as
gifts in excess of the amount provided in the instructions? See instructions regarding related donors . . . . . . .
If “Yes,” complete columns (a) through (g) with respect to each such gift. If more space is needed, attach a statement.
(a)
Date of gift

(b)
Name of foreign donor

(c)
Address of foreign donor

(e)
Check the box that applies to the foreign donor
Corporation

56

Sign
Here

Yes

No

(d)
TIN, if any

(f)
Description of property received

(g)
FMV of property received

Partnership

Do you have any reason to believe that the foreign donor, in making any gift or bequest described in lines 54 and 55, was
acting as a nominee or intermediary for any other person? If “Yes,” see instructions . . . . . . . . . . . .

Yes

No

Under penalties of perjury, I declare that I have examined this return, including any accompanying reports, schedules, or statements, and to the best of my
knowledge and belief, it is true, correct, and complete.

Paid
Preparer
Use Only

Print/Type preparer’s name

Date

Title

Signature
Preparer’s signature

Date

PTIN
Check
if
self-employed

Firm’s name

Firm’s EIN

Firm’s address

Phone no.
Form 3520 (Rev. 12-2023)