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Trusts and Estates Foreign Asset Reporting: FATCA, FBAR, Forms 3520, 5471, and 8865

Note: CLE credit is not offered on this program

Recording of a 110-minute CPE webinar with Q&A

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Conducted on Wednesday, March 4, 2020

Recorded event now available

or call 1-800-926-7926

This course will identify and explain the many required foreign reporting obligations, best practices for avoiding penalties, and how to resolve past noncompliance for trusts and estates. This webinar is for tax preparers, fiduciaries, and other professionals working with trusts and estates.


The government assesses and collects FBAR liability and penalties from beneficiaries and executors after a decedent's date of death and after assets are distributed. In United States v. Park, No. 16 C 10787 (N.D. Ill. May. 24, 2019), for example, the penalty assessed was over $3.5 million. Executors and tax professionals must include determining a taxpayer's compliance with foreign reporting obligations as a necessary step when reviewing, settling, or reporting a decedent's estate.

The penalty for non-willful FBAR violations is $10,000; this can be waived for reasonable cause. Willful non-filing, however, can result in penalties of $100,000 or 50% of the account balance, whichever is larger, as assessed in U.S. v. Park. Advisers must be able to identify and distinguish between a potentially willful or non-willful violation to accurately advise clients.

Form 1040, Schedule B, asks: "During 2019, did you receive a distribution from, or were you the grantor of, or transferor to, a foreign trust? If 'Yes,' you may have to file Form 3520. See instructions."

In addition to the FBAR, Form 3520 must be filed when a person receives a gift, inheritance, or distribution from a trust established by a foreign entity or individual. In addition to the 3520, owners of foreign trusts must file Forms 8938 and the FBAR. The trust itself must annually file for 3520-A, Annual Information Return of Foreign Trust With a U.S. Owner. Parts II and III of the form require reporting a complete set of books for the entity, an income statement, and balance sheet.

Listen as our panel of experts discusses identifying trusts and estates with foreign reporting obligations, reviews the current government initiative to assess penalties, explains the completion of required forms, and outlines best practices for bringing taxpayers into compliance.



  1. Responsible parties
  2. FATCA and FBAR reporting requirements
  3. Forms 3520 and 3520-A
  4. Other reporting obligations
  5. Review of recent cases
  6. Handling past noncompliance
  7. Best practices for avoiding penalties


The panel will discuss these and other critical issues:

  • Identifying willful and non-willful FBAR violations
  • Uncovering reportable foreign assets held by trusts and estates
  • Preparing Forms 3520 and 3520-A for foreign gifts and distributions received
  • Handling past noncompliance


McCormick, Patrick
Patrick J. McCormick, J.D., LL.M.

Culhane Meadows Haughian & Walsh

Mr. McCormick specializes in the areas of international taxation, tax compliance, and offshore reporting...  |  Read More

Saucedo, Tony
Tony Saucedo, II, CPA

Bowles Womack & Company

Mr. Saucedo’s client responsibilities consist of providing a variety of advisory services to private closely held...  |  Read More

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CPE credit is not available on downloads.