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.
- Determining owners and responsible parties
- Reportable events
- Gratuitous transfers
- Qualified obligations
- Distributions and calculations
- 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
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?
Jack R. Brister, TEP
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, 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.Close
Christiana M. Lazo
Kirkland & Ellis
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.Close
Lawrence M. Lipoff, CPA, TEP, CEBS
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, consultation regarding formation of family trusts and philanthropic structures. He is a frequent lecturer and author of articles published through professional forums on topics that include preparation of 1040/1041 & 706/709 returns, IRA/pension distribution, domestic and international asset protection, business succession, generation-skipping transfers, S corporation and fiduciary taxation including foreign trusts, alternative minimum tax, Chapter 14, family limited partnerships, international estate planning and administration, grantor charitable lead trusts, captive insurance companies, private placement life insurance and carried interest estate planning for private equity and hedge fund principals.Close
Patricia Weisgerber, Esq., LL.M.
Cushing & Dolan
Ms. Weisgerber practices in the areas of estate planning, elder Law, probate law, family law, real estate, business law... | Read More
Ms. Weisgerber practices in the areas of estate planning, elder Law, probate law, family law, real estate, business law and tax controversies.Close