Description
Course Description
Gain a better understanding of foreign trusts and the reporting obligations for filing Form 3520.
Not all tax professionals have cross border exposure and awareness of Form 3520, when it’s required and how severe the penalties are for failure to file such Form. It is an informational form that often gets overlooked. This presentation will help tax professionals: [i] leave with a better understanding of what questions to ask when determining whether there is a filing requirement for their client [ii] understand the level of detail needed to complete Form 3520 [iii] explain the penalties when filing a late Form 3520 and the options that are available for tax compliance when you have one or more years of delinquency and [iv] understand recent case law pertaining to this Form.
Learning Objectives
– You will be able to describe the information needed to complete Form 3520.
– You will be able to discuss the recent case law pertaining to this Form.
– You will be able to explain the risks and penalties for failing to file Form 3520.
– You will be able to to identify when Form 3520 is necessary.
Presenter: Reshma Shah, Duane Morris LLP
Credits*: AIPB, Enrolled Agents, CPE
Time of program 65 min, 1 pm ET
Date of program September 27, 2024
What Distinguishes a Foreign Trust From a U.S. Trust?
• Court and Control Tests
• Safe Harbor Rules
• Substantial Decisions
• U.S. and Foreign Co-Trustees
• U.S. Trusts Treated as Foreign Trusts
How to Determine If a Trust Is a Grantor or Nongrantor Trust
When Does a Foreign Grantor Trust Become a Foreign Nongrantor Trust?
• Date of Death and Incapacity Issues
Taxation of U.S. Beneficiaries of Foreign Nongrantor Trusts
• Computing Distributable Net Income
• Expenses Allowed Under the Newly Enacted TCJA
• Distribution Ordering Rules
• Treatment of Net Capital Losses
• Accumulated Foreign Trust Income (Undistributed Net Income)
• Use of Foreign Trust Property
• 65-Day Distribution Election
Throwback Tax
• Rules
• Minimization Strategies
• Default Method
• Calculation
• Minimization Strategy
Tax Reporting Obligations
• Forms 3520 and Form 3520-A
• Other Related International Information Returns
Civil Law Wealth Transfer Mechanisms
Jack Brister-International Wealth Tax Advisors
