Form 3520-A Line by Line: Preparing Owner and Beneficiary Statements, Avoiding Penalties, Handling Missed Filings

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Course Details

Course Information

smart_display Format
On-Demand
signal_cellular_alt Difficulty Level
Intermediate
work Practice Area
Tax Preparer

Date & Time

event Date
Monday, April 28, 2025
schedule Time
1:00 p.m. ET./10:00 a.m. PT
timer Program Length
110 minutes

Credit Information

BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.
BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

$197.00

This webinar will provide trust and international practitioners with a line-by-line explanation of the filing requirements and examples of filing Form 3520-A, Annual Information Return Foreign Trust With a U.S. Owner. Our panel of international tax veterans will offer advice for unfiled returns and tips to efficiently prepare this form for foreign trusts and clients who participate in these instruments.

Faculty

John Samtoy

Tax Partner

Holthouse Carlin & Van Trigt LLP

Mr. Samtoy’s practice specializes in international tax compliance and consulting services, with a focus on individuals, closely-held businesses, and hedge funds. He has particular expertise in structuring and reporting foreign manufacturing arrangements and foreign holding companies, and is experienced in foreign asset disclosure requirements, as well as foreign trust and estate reporting.

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Jack R. Brister

Managing Member

International Wealth Tax Advisors, LLC

Mr. Brister specializes in U.S. tax planning and compliance for non-U.S. families with international wealth and asset protection structures which include foreign trusts, estates and foundations that have a U.S. connection, as well as foreign companies wanting to do business in the U.S. He also specializes in foreign investment in U.S. real property, and other U.S. assets, pre-immigration tax planning, U.S. expatriation matters, U.S. persons in receipt of foreign gifts and inheritances, foreign accounts and assets compliance, offshore voluntary disclosures, FATCA registration, executives working and living abroad and annual reporting. He has been widely published, in addition to speaking at numerous international engagements.

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Description

Form 3520-A is required for foreign trusts with a U.S. owner. If the foreign trustee does not file, the U.S. owner must satisfy the reporting obligation. Similar to Form 1041, U.S. Income Tax Return for Estates and Trusts, Form 3520-A is used to report income, expenses, distributions, assets, and other key information about the trust itself and its beneficiaries. Form 3520-A also requires completion of a Trust Owner Statement and a Beneficiary Statement.

U.S. owners of foreign trusts treated as grantors under IRC Sections 671-679 must complete this form to satisfy its reporting obligations under Section 6048(b). Not complying can evoke a penalty that is the greater of $10,000 or five percent of the value of the beneficiary's portion of the trust; no statute of limitations would run on the imposition of these penalties. There are, however, several exceptions to the filing requirement. International tax advisers working with clients who are grantors of foreign trusts need to understand the filing requirements, exceptions, and how to properly prepare Form 3520-A and its required statements.

Listen as our panel of foreign trust experts discusses preparing Form 3520-A in order to meet the filing obligations under Section 6048(b) and avoid penalties.

Outline

Form 3520-A: overview
Who must file?
Exceptions to filing requirements
Penalties
Handling missed filings
Preparing the Form, Parts I - III
Foreign Grantor Trust Owner Statement
Foreign Grantor Trust Beneficiary Statement
Additional filings and reporting requirements

Benefits

The panel will cover these and other critical issues:

How to complete the Trust Beneficiary Statement
Best practices for handling missed required filings of Form 3520-A
When is the U.S. trust owner rather than the foreign trustee required to satisfy the filing requirements?
A line-by-line review of preparing Form 3520-A Parts I-III

NASBA Details

Learning Objectives

After completing this course, you will be able to:

Identify specific exceptions to the filing requirements under Section 6048(b)
Determine who is required to file Form 3520-A
Decide when a foreign trust owner should take responsibility for meeting filing obligations
Ascertain best practices for handling missed filings of form 3520-A

Field of Study: Taxes
Level of Knowledge: Intermediate
Advance Preparation: None
Teaching Method: Seminar/Lecture
Delivery Method: Group-Internet (via computer)
Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
Prerequisite: Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of international taxation including residency determination, foreign entity classifications, application of treaty benefits, as well as GILTI, Subpart F, and the related Section 250 deductions.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.