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Department of the Treasury
Internal Revenue Service
2022

Instructions for Form 3520-A

Annual Information Return of Foreign Trust With a U.S. Owner

Section references are to the Internal Revenue Code 2014-55. For more information about whether your
unless otherwise noted. Canadian retirement plan qualifies for an exemption from
foreign trust information reporting, see sections 3 and 5 of
Future Developments Rev. Proc. 2014-55, 2014-44 I.R.B. 753, available at
IRS.gov/IRB/2014-44_IRB#RP-2014-55.
For the latest information about developments related to
Form 3520-A and its instructions, such as legislation Rev. Proc. 2020-17 exempts from foreign trust
enacted after they were published, go to IRS.gov/ information reporting certain eligible individuals’
Form3520A. transactions with, and ownership of, certain tax-favored
foreign trusts that are established and operated
Reminders exclusively or almost exclusively to provide pension or
Exemption from information reporting under section retirement benefits, or to provide medical, disability, or
6048. Rev. Proc. 2020-17 exempts from foreign trust educational benefits. For more information about whether
information reporting certain eligible individuals’ you are an eligible individual, and whether your foreign
transactions and ownership. See Exceptions To Filing, trust qualifies for an exemption from foreign trust
later. information reporting, see section 5 of Rev. Proc.
2020-17, 2020-12 I.R.B. 539, available at IRS.gov/IRB/
2020-12_IRB#REV-PROC-2020-17.
General Instructions
The exemptions from foreign trust information reporting
Purpose of Form described in Rev. Proc. 2014-55 and Rev. Proc. 2020-17
Form 3520-A is the annual information return of a foreign do not affect any reporting obligations under section
trust with at least one U.S. owner. The form provides 6038D or under any other provision of the U.S. law,
information about the foreign trust, its U.S. beneficiaries, including the requirement to file Financial Crimes
and any U.S. person who is treated as an owner of any Enforcement (FinCEN) Form 114, Report of Foreign Bank
portion of the foreign trust under the grantor trust rules and Financial Accounts (FBAR), imposed by 31 U.S.C.
(sections 671 through 679). section 5314 and the regulations thereunder. For more
information, go to IRS.gov/FBAR.
Who Must File
When and Where To File
A foreign trust with a U.S. owner must file Form 3520-A in
order for the U.S. owner to satisfy its annual information File a complete Form 3520-A (including the statements on
reporting requirements under section 6048(b). Each U.S. pages 3 through 5) with the Internal Revenue Service
person treated as an owner of any portion of a foreign Center, P.O. Box 409101, Ogden, UT 84409, by the 15th
trust under the grantor trust rules (sections 671 through day of the 3rd month after the end of the trust's tax year.
679) is responsible for ensuring that the foreign trust files However, if you are filing a substitute Form 3520-A with
Form 3520-A and furnishes the required annual your Form 3520, then your substitute Form 3520-A is due
statements to its U.S. owners and U.S. beneficiaries. If a by the due date of Form 3520. See the Instructions for
foreign trust fails to file Form 3520-A, the U.S. owner must Form 3520 for the due date of the Form 3520. Give copies
complete and attach a substitute Form 3520-A for the of the Foreign Grantor Trust Owner Statement (pages
foreign trust to the U.S. owner’s Form 3520, Annual 3 and 4 of Form 3520-A) and the Foreign Grantor Trust
Return To Report Transactions With Foreign Trusts and Beneficiary Statement (page 5 of Form 3520-A) to the
Receipt of Certain Foreign Gifts, by the due date of the U.S. owners and U.S. beneficiaries by the 15th day of the
U.S. owner’s Form 3520 (and not the due date for the 3rd month after the end of the trust's tax year, or later if an
Form 3520-A, which is otherwise due by the 15th day of extension of time to file is granted or if filing a substitute
the 3rd month after the end of the trust’s tax year) in order Form 3520-A.
to avoid being subject to the penalty for the foreign trust’s An automatic 6-month extension of time to file Form
failure to file a Form 3520-A. See Line 22 in the 3520-A (including the statements on pages 3 through 5)
Instructions for Form 3520. See Penalties, later. will be granted by filing a properly completed Form 7004,
Application for Automatic Extension of Time To File
Exceptions To Filing Certain Business Income Tax, Information, and Other
Rev. Proc. 2014-55 exempts from foreign trust information Returns, with the foreign trust’s employer identification
reporting certain Canadian retirement plans, including number (EIN) by the 15th day of the 3rd month after the
Canadian registered retirement savings plans (RRSPs) end of the trust’s tax year. For details, see Form 7004.
and Canadian registered retirement income funds
(RRIFs), regardless of whether you are an eligible Note. An extension of time to file an income tax return will
individual described in section 4.01 of Rev. Proc. not provide an extension of time to file Form 3520-A. Form

Jul 18, 2022 Cat. No. 25096U

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7004 with the foreign trust’s EIN must be filed in order to Additional penalties will be imposed if the
request an extension of time to file Form 3520-A. noncompliance continues for more than 90 days after the
IRS mails a notice of failure to comply with the required
Form 3520-A must have all required attachments to be reporting. If the IRS can determine the gross value
considered complete. (defined later) of the portion of the trust’s assets treated
as owned by the U.S. person at the close of the tax year,
Who Must Sign
then the penalties will be reduced as necessary to assure
If the return is filed by: that the aggregate amount of such penalties does not
• An individual or fiduciary, it must be signed and dated exceed the gross value of the trust. For more information,
by that individual or fiduciary; see section 6677.
• A partnership, it must be signed and dated by a general
partner or limited liability company member; or Criminal penalties may be imposed under sections
• A corporation, it must be signed and dated by the 7203, 7206, and 7207 for failure to file on time and for
president, vice president, treasurer, assistant treasurer, filing a false or fraudulent return.
chief accounting officer, or any other corporate officer
(such as a tax officer) authorized to sign. Note. If a U.S. owner of a foreign trust is subject to a
penalty imposed under section 6662 for an underpayment
Note. If the return is a substitute Form 3520-A that is of tax required to be shown on a return, then such penalty
being completed by a U.S. owner and attached to the U.S. may be increased under section 6662(j) for any portion of
owner’s Form 3520, then the U.S. owner must sign and an underpayment that is attributable to any transaction
date the return and provide the U.S. owner’s name and involving any asset with respect to which information was
taxpayer identification number (TIN) on the “Title” line of required to be provided on Form 3520-A. For more
the signature box. For more information about the information about undisclosed foreign financial asset
requirements to file a substitute Form 3520-A, see Line 22 understatements, see section 6662(j).
in the Instructions for Form 3520.
Reasonable cause. No penalties will be imposed if the
The paid preparer must complete the required preparer taxpayer can demonstrate that the failure to comply with
information and: the reporting requirements was due to reasonable cause
• Sign the return in the space provided for the preparer's and not willful neglect.
signature, and
• Give a copy of the return to the filer. Note. The fact that a foreign country would impose
penalties for disclosing the required information is not
Inconsistent Treatment of Items reasonable cause. Similarly, reluctance on the part of a
The U.S. beneficiary’s and U.S. owner’s tax returns must foreign fiduciary or provisions in the trust instrument that
be consistent with the Form 3520-A, Annual Information prevent the disclosure of required information is not
Return of Foreign Trust With a U.S. Owner, filed by the reasonable cause. See section 6677(d) for more
foreign trust unless you report the inconsistency to the information.
IRS. If the U.S. beneficiaries or U.S. owners are treating
Definitions
items on their tax returns differently from the way the
foreign trust treated them on its return, they must file Form Distribution
8082, Notice of Inconsistent Treatment or Administrative
Adjustment Request (AAR). See Form 8082 for more A distribution received directly or indirectly from a foreign
details. trust for section 6048(c) reporting purposes is any
gratuitous transfer of money or other property from a
Penalties foreign trust, whether or not a portion of such trust is
The U.S. owner is subject to an initial penalty equal to the treated as a grantor trust under the grantor trust rules of
greater of $10,000 or 5% of the gross value (defined later) sections 671 through 679, and without regard to whether
of the portion of the trust's assets treated as owned by the the recipient is designated as a beneficiary by the terms of
U.S. person at the close of that tax year if the foreign trust the trust. A distribution includes the receipt of trust corpus
(a) fails to file a timely Form 3520-A, or (b) does not and the receipt of a gift or bequest described in section
furnish all of the information required by section 6048(b) 663(a).
or includes incorrect information. See section 6677(a)
A distribution also includes constructive transfers from
through (c).
a foreign trust. For example, if charges you make on a
If a foreign trust fails to file a Form 3520-A, the U.S. credit card are paid by a foreign trust or guaranteed or
owner must complete and attach a substitute Form secured by the assets of a foreign trust, the amount
3520-A to the U.S. owner’s Form 3520 by the due date of charged will be treated as a distribution to you by the
the U.S. owner’s Form 3520 (and not the due date for foreign trust. Similarly, if you write checks on a foreign
Form 3520-A) in order to avoid being subject to a penalty trust's bank account, the amount will be treated as a
for the foreign trust’s failure to file a Form 3520-A. For distribution. Also, if you receive a payment from a foreign
example, a substitute Form 3520-A that, to the best of the trust in exchange for property transferred to the trust or
U.S. owner’s ability, is completed and attached to the U.S. services rendered to the trust, and the fair market value
owner’s Form 3520 by the due date for the Form 3520 (FMV) of the payment you received exceeds the FMV of
(such as April 15 for the U.S. owners who are individuals) the property transferred or services rendered, the excess
is considered timely filed. will be treated as a distribution to you. See section V of

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Notice 97-34, 1997-25 I.R.B. 22, available at IRS.gov/pub/ appraisals are generally not required, you should keep
irs-irbs/irb97-25.pdf. contemporaneous records of how you arrived at your
Example 1. If you sell stock with an FMV of $100 to a good faith estimate.
foreign trust and receive $150 in exchange, you have
Nongrantor Trust
received a distribution of $50.
A nongrantor trust is any trust to the extent that the assets
Example 2. If you receive $100 from the trust for of the trust are not treated as owned by a person other
services performed by you for the trust, and the services than the trust under the grantor trust rules in sections 671
have an FMV of $20, you have received a distribution of through 679. Thus, a nongrantor trust is treated as a
$80. taxable entity. A trust may be treated as a nongrantor trust
with respect to only a portion of the trust assets. See
Foreign Trust and Domestic Trust
Grantor Trust, earlier.
A foreign trust is any trust other than a domestic trust. A
domestic trust is any trust if: Owner
1. A court within the United States is able to exercise An owner of a foreign trust is the person that is treated as
primary supervision over the administration of the trust, owning any of the assets of a foreign trust under the
and grantor trust rules.
2. One or more U.S. persons have the authority to
control all substantial decisions of the trust. Property
Property means any property, whether tangible or
Grantor intangible, including cash.
A grantor includes any person who creates a trust or
directly or indirectly makes a gratuitous transfer of cash or U.S. Agent
other property to a trust. A grantor includes any person A U.S. agent is a U.S. person (defined later) that has a
treated as the owner of any part of a foreign trust's assets binding contract with a foreign trust that allows the U.S.
under sections 671 through 679, excluding section 678. person to act as the trust's authorized U.S. agent (see the
instructions for Lines 3a through 3g under Part I, later) in
Note. If a partnership or corporation makes a gratuitous applying sections 7602, 7603, and 7604 with respect to:
transfer to a trust, the partners or shareholders are • Any request by the IRS to examine records or produce
generally treated as the grantors of the trust, unless the testimony related to the proper U.S. tax treatment of
partnership or corporation made the transfer for a amounts distributed, or required to be taken into account
business purpose of the partnership or corporation. under the grantor trust rules, with respect to a foreign
If a trust makes a gratuitous transfer to another trust, trust; or
the grantor of the transferor trust is treated as the grantor • Any summons by the IRS for such records or testimony.
of the transferee trust, except that if a person with a A U.S. grantor, a U.S. beneficiary, or a domestic
general power of appointment over the transferor trust corporation controlled by the grantor or beneficiary may
exercises that power in favor of another trust, such person act as a U.S. agent. However, you may not treat the
is treated as the grantor of the transferee trust, even if the foreign trust as having a U.S. agent unless you enter the
grantor of the transferor trust is treated as the owner of the name, address, and TIN of the U.S. agent on lines 3a
transferor trust. through 3g of Part I of the form. See Taxpayer
identification numbers (TINs), later.
Grantor Trust
If a foreign trust with a U.S. owner does not have a U.S.
A grantor trust is any trust to the extent that the assets of agent, the IRS may redetermine the amounts required to
the trust are treated as owned by a person other than the be taken into account with respect to the foreign trust by
trust. See the grantor trust rules in sections 671 through the U.S. owner. See section 6048(b)(2). The agency
679. A part of the trust may be treated as a grantor trust to relationship must be established by the time the U.S.
the extent that only a portion of the trust assets are owned person files Form 3520-A for the relevant tax year and
by a person other than the trust. must continue as long as the statute of limitations remains
open for the relevant tax year. If the agent’s responsibility
Note. Under the HIRE Act, effective after March 18,
as an agent of the trust is terminated for any reason (for
2010, if a foreign trust directly or indirectly loans cash or
example, agent’s resignation, agent’s liquidation, or
marketable securities to a U.S. person who does not
agent’s death), see section IV.B of Notice 97-34.
repay the loan at a market rate of interest, or allows a U.S.
person to use trust property without paying FMV within a U.S. Beneficiary
reasonable period of time, the trust will be treated as
having a U.S. beneficiary and is therefore treated as a A U.S. beneficiary generally includes any U.S. person that
grantor trust under the grantor trust rules. could possibly benefit (directly or indirectly) from the trust
(including an amended trust) at any time, whether or not
Gross Value the person is designated in the trust instrument as a
beneficiary and whether or not the person can receive a
Gross value is the value of property as determined under
distribution from the trust in the current year. In addition, a
section 2512 and its regulations, without regard to any
U.S. beneficiary includes:
prohibitions or restrictions on a person's interest in the
property. See section VII of Notice 97-34. Although formal • A foreign corporation that is a controlled foreign
corporation (as defined in section 957(a)),

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• A foreign partnership if a U.S. person is a partner of the U.S. Person
partnership, and A U.S. person is:
• A foreign estate or trust if the estate or trust has a U.S. • A citizen or resident alien of the United States, including
beneficiary. See section II of Notice 97-34 and the dual residents who claim the benefits under an income tax
regulations under section 679 for additional information. treaty (see Pub. 519, U.S. Tax Guide for Aliens, for
Foreign trust treated as having a U.S. beneficiary. In guidance on determining resident alien status);
general, if a U.S. person, directly or indirectly, transfers • A domestic partnership;
property to a foreign trust (other than a deferred • A domestic corporation;
compensation or charitable trust described in section • Any estate (other than a foreign estate, within the
6048(a)(3)(B)(ii)), the foreign trust will be treated as meaning of section 7701(a)(31)(A)); and
having a U.S. beneficiary unless the terms of the trust • Any domestic trust (defined earlier).
instrument specifically prohibit any distribution of income
or corpus to a U.S. person at any time, even after the
death of the U.S. transferor or any event terminating the Specific Instructions
trust, and the trust cannot be amended or revised to allow
Period Covered
such a distribution. For these purposes, an amount will be
treated as accumulated for the benefit of a U.S. person File the 2022 return for calendar year 2022 and fiscal
even if the U.S. person's interest in the trust is contingent years that begin in 2022 and end in 2023. For a fiscal
on a future event and regardless of whether anything is year, fill in the tax year in the space at the top of the form.

actually distributed to a U.S. person during that tax year. Initial Return, Final Return, Amended
Special rule in case of discretion to identify
beneficiaries. For purposes of the general rule above, if Return, Extension Filed, Substitute
any person has the discretion of making a distribution Form 3520-A
from the trust to, or for the benefit of, any person, the trust
will be treated as having a beneficiary who is a U.S. Initial return. If this is the foreign trust's first return,
person, unless the terms of the trust specifically identify check the “Initial return” box.
the class of persons to whom such distributions may be Final return. If the foreign trust ceases to exist, check
made, and none of those persons are U.S. persons during the “Final return” box.
the tax year.
Certain agreements and understandings treated as Amended return. If this Form 3520-A is filed to amend a
terms of the trust. For purposes of the general rule Form 3520-A that you previously filed, check the
above, if any U.S. person who directly or indirectly “Amended return” box.
transfers property to the trust is directly or indirectly Extension filed. If the Form 7004 was timely filed to
involved in any agreement or understanding (whether request an extension for the Form 3520-A, check the
written, oral, or otherwise) that may result in the income or “Extension filed” box.
corpus of the trust being paid or accumulated to, or for the
benefit of, a U.S. person, such agreement or Substitute Form 3520-A. If you are a U.S. owner of the
understanding will be treated as a term of the trust. foreign trust filing a substitute Form 3520-A and attaching
it to your Form 3520, check the “Substitute Form 3520-A”
Certain loans or uncompensated use of trust
box.
property. If a foreign trust is not already treated as
having a U.S. beneficiary under the rules described Excepted Specified Foreign Financial
above, the trust will be treated as having a U.S.
beneficiary if, after March 18, 2010, either: Assets Reported
• The foreign trust loans cash or marketable securities, Check the box only if a U.S. person treated as the owner
directly or indirectly, to a U.S. person and the U.S. person of any portion of the trust under the grantor trust rules also
does not repay the loan at a market rate of interest within files Form 8938, Statement of Specified Foreign Financial
a reasonable period of time; or Assets, for the tax year and includes this form in the total
• A U.S. person, directly or indirectly, uses property that number of Forms 3520-A reported on line 16 of Part IV,
is owned by the foreign trust and does not pay FMV of the Excepted Specified Foreign Financial Assets, of Form
use of such property within a reasonable period of time. 8938. For more information, see the Instructions for Form
8938, generally, and in particular, Duplicative reporting
Presumption that foreign trust has U.S. beneficiary.
and the specific instructions for Part IV.
If a U.S. person, directly or indirectly, transfers property to
a foreign trust (other than a deferred compensation or Part I—General Information
charitable trust described in section 6048(a)(3)(B)(ii)), the
IRS may treat such trust as having a U.S. beneficiary for Taxpayer identification numbers (TINs). Use social
purposes of applying section 679(d) to such transfer if the security numbers (SSNs) or individual taxpayer
IRS requests information with respect to the transfer and identification numbers (ITINs) to identify individuals. Use
the U.S. person fails to demonstrate to the satisfaction of EINs to identify estates, trusts, partnerships, and
the IRS that no portion of the income or corpus of the trust corporations. Don’t use an SSN in place of an EIN.
may ever be paid to or accumulated for the benefit of a Applying for an EIN. If you don’t have an EIN, you may
U.S. person. apply for one online at IRS.gov/EIN. If the principal
business was created or organized outside of the United

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States or U.S. territories, you may also apply for an EIN by AUTHORIZATION OF AGENT
calling 267-941-1099 (toll call). [ Name of foreign trust ] hereby expressly authorizes [ name of
Do not enter a preparer tax identification number U.S. agent ] to act as its agent solely for purposes of sections
7602, 7603, and 7604 of the Internal Revenue Code with respect to
! (PTIN) in any entry space on Form 3520-A other any request to examine records or produce testimony related to the
CAUTION than the entry space for “PTIN” at the bottom of proper treatment of amounts required to be taken into account
page 1 of the form. under the rules of section 6048(b)(2)(A) or to any summons for such
records or testimony. I certify that I have the authority to execute
this authorization of agent to act on behalf of [ name of foreign
Address. Include the room, suite, or other unit number trust ].
after the street address. If the post office does not deliver
mail to the street address and the U.S. person has a P.O.
box, show the box number instead. Signature of trustee (title) (date)
(or other authorized person)
Foreign address. Do not abbreviate the country name.
Line 1b. Enter the EIN of the foreign trust. Do not enter Your Name (type or print)
an SSN or ITIN. Only EINs should be used to identify the
foreign trust. Identication Number (if any)
Line 2. If the trust did not appoint a U.S. agent, attach the
Address
following documents to Form 3520-A.
• A summary of the terms of the trust that includes a [ Name of agent ] accepts this appointment to act as agent
summary of any oral agreements or understandings you for [ name of foreign trust ] for the above purpose. I certify that I
have the authority to execute this authorization of agent to act on
have with the trustee, whether or not legally enforceable. behalf of [ name of foreign trust ] and agree to accept service of
• A copy of all trust documents (and any revisions), process for the above purposes.
including the trust instrument, any memoranda of wishes
prepared by the trustees summarizing the settlor's wishes,
any letter of wishes prepared by the settlor summarizing Signature of agent (title) (date)
his or her wishes, and any similar documents.
• A copy of the trust’s organizational chart, including Your Name (type or print)
ownership structure and percentage of ownership.
Identication Number (if any)
Note. If these documents have been attached to a Form
3520-A filed within the previous 3 years, attach only Address
relevant updates.
Lines 3a through 3g. If a foreign trust with a U.S. owner Do not enter a PTIN on the authorization form.
does not have a U.S. agent, the IRS may determine the !
amounts required to be taken into account with respect to CAUTION
the foreign trust by the U.S. owner. See section 6048(b)
Line 5. Enter the number of Foreign Grantor Trust
(2). In order to avoid this, a U.S. owner of a foreign trust
Owner Statements (pages 3 and 4) included with this
should ensure that the foreign trust appoints a U.S.
Form 3520-A.
person to act as the foreign trust's limited agent for
purposes of applying sections 7602, 7603, and 7604 with Line 6. Enter the number of Foreign Grantor Trust
respect to a request by the IRS to examine records or Beneficiary Statements (page 5) included with this Form
produce testimony, or a summons by the IRS for such 3520-A.
records or testimony. Any U.S. citizen, resident alien, or Sign here. In general, the trustee of the foreign trust must
domestic corporation (including a U.S. grantor or U.S. sign the Form 3520-A. However, if the U.S. owner of the
beneficiary of a foreign trust) may act as the U.S. agent of foreign trust is filing a substitute Form 3520-A, the U.S.
the trust. owner must sign. See Who Must Sign, earlier.
In order to authorize a U.S. person to act as an agent
under section 6048(b), the trust and the agent must enter Part II—Foreign Trust Income
into a binding agreement substantially in the format that Statement
follows. Attach a copy of the authorization to Form
3520-A. Include all income from U.S. and non-U.S. sources. This
financial statement must reasonably reflect the trust's
income under U.S. income tax principles.

Income
Line 1. Interest. Report all taxable interest income that
was received during the tax year. Examples of taxable
interest include, but are not limited to, interest from the
following.
• Accounts (including certificates of deposit and money
market accounts) with banks, credit unions, and thrift
institutions.

Instructions for Form 3520-A (2022) -5-

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• Notes, loans, and mortgages. Line 10b. State and local taxes. Enter any deductible
• U.S. Treasury bills, notes, and bonds. state and local income or real property taxes paid or
• U.S. savings bonds. incurred during the tax year that are not reported
• Original issue discount. elsewhere in Part II.
• Income received as a regular interest holder of a real
Do not deduct on line 10b or on any other line of Part II:
estate mortgage investment conduit (REMIC).
• Federal income taxes;
For taxable bonds acquired after 1987, amortizable • Estate, inheritance, legacy, succession, and gift taxes;
bond premium is treated as an offset to the interest or
income instead of as a separate interest deduction. See • Federal duties and excise taxes.
Pub. 550, Investment Income and Expenses.
Line 11. Amortization and depreciation (depletion). A
Line 2. Dividends. Report all ordinary dividends reasonable amount is allowed as a depreciation deduction
received during the tax year. for the exhaustion, wear, and tear of:
• Property used in a trade or business, or
Note. Report capital gain distributions on Line 5. Capital
• Property held for the production of income.
gains (losses) of this section.
Line 12. Trustee and advisor fees. Enter the
Line 4. Income (loss) from partnerships, fiduciaries,
deductible fees paid or incurred to the fiduciary for
etc. Enter the trust's share of income or (losses) from
administering the trust during the tax year.
partnerships, S corporations, estates, other trusts, and
REMICs. Line 13. Charitable contributions. Generally, any part
If the trust received a Schedule K-1 from a partnership, of the income reported on line 8 that is paid (or treated as
S corporation, or other flow-through entity, use the paid) during the tax year for a charitable purpose specified
corresponding lines on Form 3520-A to report the interest, in section 170(c) is allowed as a deduction. It is not
dividends, capital gains, etc., from the flow-through entity. necessary that the charitable organization be created or
organized in the United States.
Line 5. Capital gains (losses). For capital gains or
(losses) attributable to a U.S. owner, use Schedule D Line 14. Other expenses. Enter other items of expense
(corporate or individual, whichever applies) and Form not listed on lines 9 through 13. List the type and amount
8949, Sales and Other Dispositions of Capital Assets, if on an attached statement if the trust has more than one
applicable. item.
Line 6. Ordinary gains (losses). Enter the ordinary gain Line 17a. FMV of total distributions. Attach a
or (loss) from the sale or exchange of property other than statement that provides the following information
capital assets and also from involuntary conversions concerning the transfer.
(other than casualty or theft). 1. Name, U.S. TIN (if any), and country of organization
or residence of the person to whom the property was
Line 7. Other income. Enter other items of income not
transferred.
included on lines 1 through 6. List the types and amounts
on an attached statement if the trust has more than one 2. A general description of the transfer, and any
item. broader transaction of which it forms a part, including a
chronology of the transfers involved and an identification
Items to be reported on line 7 include any part of a total
of the other parties to the transaction to the extent known.
distribution shown on Form 1099-R, Distributions From
Pensions, Annuities, Retirement or Profit-Sharing Plans, 3. A description of the property transferred, including
IRAs, Insurance Contracts, etc., that is treated as ordinary the estimated FMV and the adjusted basis of the property.
income. For more information, see the instructions for 4. A description of the consideration received by the
Form 4972, Tax on Lump-Sum Distributions. trust, including its estimated FMV, and for stock or
securities, the class or type, amount, and characteristics
Expenses of the interest received. If no consideration was received
Line 9. Interest expense. Enter the amount of interest by the trust, indicate whether the trust or a U.S. owner
(subject to limitations) paid or incurred by the trust on exercises any powers over the entity to which the property
amounts borrowed by the trust, or on debt acquired by the was transferred (including a description of such powers),
trust, that is not reported elsewhere in Part II. and identify the name, U.S. TIN (if any), and country of
organization or residence of all beneficial owners of such
If the proceeds of a loan were used for more than one entity.
purpose (for example, to purchase a portfolio investment
and to acquire an interest in a passive activity), the 5. To the extent known, a description of any
fiduciary must make an interest allocation according to the subsequent transfer of the property, including the name,
rules in Temporary Regulations section 1.163-8T. U.S. TIN (if any), and country of organization or residence
of the person to whom the property was subsequently
Do not include interest paid on indebtedness incurred transferred.
or continued to purchase or carry obligations on which the
interest is wholly exempt from income tax. The statement must also contain a description of the
trust ownership structure setting forth the name, U.S. TIN
Line 10a. Foreign taxes. A foreign tax includes only a
(if any), and country of organization of all entities in which
tax imposed by the authority of a foreign country.
the trust has an ownership interest, including an

-6- Instructions for Form 3520-A (2022)

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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

ownership chart showing the trust's position in the chain of Foreign Grantor Trust Beneficiary
ownership and the percentages of ownership.
Statement
Note. The term “person” includes an individual or an A copy of this statement (page 5 of Form 3520-A) must be
entity, whether U.S. or foreign. See the definition of U.S. (a) furnished to each U.S. beneficiary who receives a
person, earlier. A foreign person is an individual or entity distribution, directly or indirectly, from the foreign trust
that is not a U.S. person. during the tax year; and (b) included with this Form
Lines 17b and 17c. Distributions to U.S. owners and 3520-A. See the definitions for U.S. beneficiary and
U.S. beneficiaries. Separately list the total amount of distribution provided earlier in these instructions.
distributions (including the uncompensated use of trust Exception. Do not complete this statement for a U.S.
property) to each U.S. owner and U.S. beneficiary. List the person for any portion of the trust of which that U.S.
full name, TIN, date of distribution, and FMV on the date person is treated as the owner; instead, complete the
of distribution (dollar amount) for each U.S. owner and Foreign Grantor Trust Owner Statement for that U.S.
U.S. beneficiary who receives a distribution. If more space person (as described earlier).
is needed, attach a statement.
Prepare a separate Foreign Grantor Trust Owner The statement must be furnished to the U.S.
Statement (see below) or Foreign Grantor Trust beneficiary no later than the 15th day of the 3rd month
Beneficiary Statement (see below) for each U.S. owner following the end of the trust's tax year, or later if an
or for each U.S. beneficiary who receives a distribution extension of time to file is granted, or if filing a substitute
from the trust. Form 3520-A. See When and Where To File, earlier.
TINs and addresses. See the instructions for Part I,
Part III—Foreign Trust Balance Sheet earlier, for information on entering TINs and addresses.
List all assets and liabilities of the trust, including those
assets and liabilities attributable to the portion(s) of the Paperwork Reduction Act Notice. We ask for the
trust (if any) not treated as owned by a U.S. person. information on this form to carry out the Internal Revenue
The balance sheet should reflect FMV. Include laws of the United States. You are required to give us the
certificates of deposit as cash on line 1. information. We need it to ensure that you are complying
with these laws and to allow us to figure and collect the
Line 18. Accumulated trust income. Include the total right amount of tax.
amount of trust income accumulated and not distributed.
You are not required to provide the information
Foreign Grantor Trust Owner requested on a form that is subject to the Paperwork
Reduction Act unless the form displays a valid OMB
Statement
control number. Books or records relating to a form or its
A copy of this statement (pages 3 and 4 of Form 3520-A) instructions must be retained for as long as their contents
must be (a) furnished to each U.S. person who is treated may become material in the administration of any Internal
as an owner of the foreign trust under the grantor trust Revenue law.
rules, and (b) included with this Form 3520-A. The
statement must be furnished to each U.S. owner no later The time needed to complete and file the form will vary
than the 15th day of the 3rd month following the end of the depending on individual circumstances. The estimated
trust's tax year, or later if an extension of time to file is average time is:
granted, or if filing a substitute Form 3520-A. See When
and Where To File, earlier. Recordkeeping. . . . . . . . . . . . . . . . . 37 hr., 18 min.
TINs and addresses. See the instructions for Part I, Learning about the law or the
earlier, for information on entering TINs and addresses. form. . . . . . . . . . . . . . . . . . . . . . . . . 2 hr., 40 min.
Line 8. Trust documents. If the trust did not appoint a Preparing and sending the form to
U.S. agent, list the documents attached to the current year the IRS. . . . . . . . . . . . . . . . . . . . . . . 3 hr., 24 min.
Form 3520-A and those attached to a Form 3520-A filed
within the last 3 years. Specify the years the documents
were attached. See Line 2 under Part I, earlier, for a list of If you have comments concerning the accuracy of
documents the trust is required to attach to Form 3520-A. these time estimates or suggestions for making this form
simpler, we would be happy to hear from you. You can
Statement of Foreign Trust Income Attributable send us comments from IRS.gov/FormComments. Or you
to U.S. Owner can send your comments to: Internal Revenue Service,
The amounts on the statement must include the portion of Tax Forms and Publications Division, 1111 Constitution
income reported by the foreign trust deemed attributable Ave. NW, IR-6526, Washington, DC 20224. Do not send
to the U.S. owner. the form to this office. Instead, see When and Where To
The foreign trust may need to furnish to the U.S. owner File, earlier.
additional information, including applicable statements, to
ensure that the owner accurately reports income and
expenses on the owner's U.S. income tax return.

Instructions for Form 3520-A (2022) -7-

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