Form 3520: Reporting Foreign Trust Activities on U.S. Beneficiaries' Income Tax Returns
Identifying Filing Obligations, Completing the Form, DNI Planning After MID Disallowance, Avoiding Throwback Tax
Note: CLE credit is not offered on this program
Recording of a 110-minute CPE webinar with Q&A
This course will provide a practical guide to U.S. tax reporting obligations of U.S. beneficiaries of foreign trusts and non-grantor trusts, including filing Form 3520. The panel will explain the circumstances, events, and transactions that trigger the requirement to file Form 3520. The panel will provide an in-depth review of Form 3520 and discuss distribution planning for foreign trusts with U.S. beneficiaries.
Outline
- Determining owners and responsible parties
- Reportable events
- Distributions
- Qualified Obligations
- Obligations
- Gifts and bequests
- Other form items
- DNI calculations and distribution strategies
- Completing the form
- Throwback tax
- 65-day rule
- Form 4970
- IRC Section 6677 penalties for failure to file and relief provisions
- Calculation of penalties
- Section 6048 special rules
- Reasonable cause exceptions
Benefits
The panel will discuss these and other key issues:
- What reportable events trigger a Form 3520 filing requirement?
- What is the overlap between Form 3520 and other foreign information reporting requirements such as Forms 5471, 8865, 8621, and Schedule B?
- What are the filing requirements for the U.S. beneficiary of a foreign non-grantor trust?
- What are the penalties and relief provisions for failure to file a Form 3520 or Form 3520-A?
- What are the processes for establishing a reasonable cause exception for penalty abatement?
Faculty
Jack Brister
Managing Member
International Wealth Tax Advisors
Mr. Brister specializes in U.S. tax planning and compliance for non-U.S. families with international wealth and asset... | Read More
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. He also specializes in foreign investment in U.S. real property, and other U.S. assets, pre-immigration planning, U.S. expatriation matters, U.S. persons in receipt of large foreign gifts and inheritances, foreign account compliance and offshore voluntary disclosures.
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Christiana M. Lazo
Partner
Proskauer
Ms. Lazo’s practice consists of representing ultra-high net worth individuals, their family offices, and closely... | Read More
Ms. Lazo’s practice consists of representing ultra-high net worth individuals, their family offices, and closely held businesses in developing and implementing sophisticated domestic and international tax and estate plans. She has significant experience counseling global clients on inbound and outbound planning, particularly advising families with members in multiple jurisdictions on wealth transfers and on tax-efficient investment and business ownership structures.
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Lawrence M. Lipoff, CPA, TEP
Director
CohnReznick
With more than 30 years of experience, Mr. Lipoff specializes in the delivery of domestic and international private... | Read More
With more than 30 years of experience, Mr. Lipoff specializes in the delivery of domestic and international private client services to enable high-net-worth individuals and families to maximize their new or generational wealth. He provides strategic advice to his clients and their closely held businesses in the areas of income tax planning and compliance, estate planning and administration services, as well as family structure consulting. Through many years in practice, he synthesized the work of various related professionals, and their firms integrate several planning strategies into solutions that maximize value. Mr. Lipoff is a frequent lecturer and author of articles published through professional forums on topics including domestic and international - estate planning and fiduciary income taxation including constructive attribution rules for foreign trusts, Forms 3520 & 3520-A, Graegin Loans, business succession, generation-skipping transfers, Chapter 14 and carried interest estate planning for private investment fund principals, preferred freeze partnerships, and private placement life insurance.
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