Foreign Trusts and Completing Forms 3520 and 3520-A

Authored by Carolyn Turnbull
About this Course
Topics covered include: U.S. tax rules for foreign trusts, including persons who transfer property to a foreign trust and foreign trust beneficiaries; How U.S. taxation of foreign trusts differs from the U.S. taxation of domestic trusts; Classification issues for determining when a trust is a foreign trust; Purpose and preparation of Forms 3520 and 3520-A; Treatment of foreign gifts and bequests; Potential IRS audit issues and triggers to avoid; U.S. tax implications for foreign trusts; U.S. classification of foreign trusts Special U.S. tax rules applicable to foreign trusts; U.S. tax return forms for foreign trusts. Upon completing this course, you should be able to: Discuss U.S. international tax reporting and compliance for foreign trusts; Describe the steps required to properly file Forms 3520 and 3520-A; Identify potential problem areas and pitfalls to avoid; Identify a characteristic of a foreign grantor trust as it relates to U.S. tax implications; Differentiate correct statements with respect to U.S. Classification of Foreign Trusts; Describe exceptions to the recognition of gain on transfers of property by a U.S. person to foreign trust; Recognize situations where an individual would be required to file Form 3520; Identify schedules included in Part I of Form 3520 relates to qualified obligations outstanding in the current year; Differentiate forms used to provide information about the foreign trust, its U.S. beneficiaries, and any U.S. person that is treated as an owner of any portion of the foreign trust; Recognize tests that will be considered to be satisfied if U.S. persons control all substantial decisions affecting the trust and no foreign person acting in any capacity can overcome the decisions of the controlling U.S. persons; Differentiate tax forms relates to tax on accumulated distributions of trusts; Identify the amount a nonresident alien individual or a foreign estate that the U.S. person is treating as a gift or bequests is required to file Form 3520; Differentiate correct statements with respect to the penalties for failure to file Form 3520 Identify a reportable event with respect to Form 3520; Describe Schedules in Part I of Form 3520 are used to report gratuitous transfers; Recognize proper statements related to Part IV of Form 3520.
$ 68.00
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NASBA Field of Study
Taxes
Level
Intermediate
CPE Credits
2.0
Prerequisites
Basic knowledge of U.S. international taxation principles
Last Updated
01/31/2018
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