U. S. Business Income Tax Return

Instructions for Form 3520-A
(Rev. December 2025)

(Use with the December 2023 revision of Form 3520-A.)
Annual Information Return of Foreign Trust With a U.S. Owner
Section references are to the Internal Revenue Code
unless otherwise noted.

Line 22 in the Instructions for Form 3520. See Penalties,
later.

Future Developments

Exceptions To Filing

For the latest information about developments related to
Form 3520-A and its instructions, such as legislation
enacted after they were published, go to IRS.gov/
Form3520A.

Reminders
Due date. Form 3520-A is due by the 15th day of the 3rd
month after the end of the foreign trust’s tax year.
However, a substitute Form 3520-A attached to a U.S
owner’s Form 3520 is due the same day as Form 3520.
See When To File, later.
Continuous-use revision. Use these instructions for tax
year 2025 and subsequent years until a superseding
revision is issued.
Tax year and statements. Enter the tax year at the top
of the first page and all statements. If the foreign trust has
adopted a fiscal tax year, enter the calendar year in which
the fiscal tax year begins on all statements.
Note: All information provided must be in English. All
amounts reported must be in U.S. currency.

General Instructions
Purpose of Form

Form 3520-A is the annual information return of a foreign
trust with at least one U.S. owner. The form provides
information about the foreign trust, its U.S. beneficiaries,
and any U.S. person who is treated as an owner of any
portion of the foreign trust under the grantor trust rules
(sections 671 through 679).

Who Must File

A foreign trust with a U.S. owner must file Form 3520-A in
order for the U.S. owner to satisfy its annual information
reporting requirements under section 6048(b). Each U.S.
person treated as an owner of any portion of a foreign
trust under the grantor trust rules (sections 671 through
679) is responsible for ensuring that the foreign trust files
Form 3520-A and furnishes the required annual
statements to its U.S. owners and U.S. beneficiaries. If a
foreign trust fails to file Form 3520-A, the U.S. owner must
complete and attach a substitute Form 3520-A for the
foreign trust to the U.S. owner’s Form 3520, Annual Return
To Report Transactions With Foreign Trusts and Receipt of
Certain Foreign Gifts, to avoid being subject to the penalty
for the foreign trust’s failure to file a Form 3520-A. See

Oct 8, 2025

Rev. Proc. 2014-55 exempts from foreign trust information
reporting certain Canadian retirement plans, including
Canadian registered retirement savings plans (RRSPs)
and Canadian registered retirement income funds
(RRIFs). For more information about whether a Canadian
retirement plan qualifies for an exemption from foreign
trust information reporting, see sections 3 and 5 of Rev.
Proc. 2014-55, 2014-44 I.R.B. 753, available at
IRS.gov/IRB/2014-44_IRB#RP-2014-55.
Rev. Proc. 2020-17 exempts from foreign trust
information reporting certain eligible individuals’
transactions with, and ownership of, certain tax-favored
foreign trusts that are established and operated
exclusively or almost exclusively to provide pension or
retirement benefits, or to provide medical, disability, or
educational benefits. For more information, see section 5
of Rev. Proc. 2020-17, 2020-12 I.R.B. 539, available at
IRS.gov/IRB/2020-12_IRB#REV-PROC-2020-17.
Proposed regulations under section 6048 exempt from
foreign trust information reporting certain eligible
individuals’ transactions with, and ownership of, certain
tax-favored foreign trusts that are established and
operated exclusively or almost exclusively to provide
pension or retirement benefits, or to provide medical,
disability, or educational benefits. You may rely on these
proposed regulations for any tax year ending after May 8,
2024, and beginning on or before the date that final
regulations are published in the Federal Register,
provided you and all related persons (within the meaning
of sections 267(b) and 707(b)(1)) apply the proposed
regulations in their entirety and in a consistent manner for
all tax years beginning with the first tax year of reliance
until the applicability date of the final regulations. For more
information, see Proposed Regulations section 1.6048-5
as published in the Federal Register at govinfo.gov/
content/pkg/FR-2024-05-08/pdf/2024-09434.pdf.
The exemptions from foreign trust information reporting
described in Rev. Proc. 2014-55, Rev. Proc. 2020-17, and
the proposed regulations under section 6048 do not affect
any reporting obligations under section 6038D or under
any other provision of the U.S. law, including the
requirement to file Financial Crimes Enforcement
(FinCEN) Form 114, Report of Foreign Bank and Financial
Accounts (FBAR), imposed by 31 U.S.C. section 5314
and the regulations thereunder. For more information, go
to IRS.gov/FBAR.

Instructions for Form 3520-A (Rev. 12-2025) Catalog Number 25096U
Department of the Treasury Internal Revenue Service www.irs.gov

When To File

The foreign trust must file Form 3520-A, including the
Foreign Grantor Trust Owner Statement (pages 3 and 4)
and the Foreign Grantor Trust Beneficiary Statement
(page 5), by the 15th day of the third month following the
end of the trust’s tax year unless an extension of time to
file is granted. The foreign trust must also provide copies
of the Foreign Grantor Trust Owner Statement (pages 3
and 4) and the Foreign Grantor Trust Beneficiary
Statement (page 5) to the U.S. owners and U.S.
beneficiaries by the due date of Form 3520-A.
If the foreign trust fails to file Form 3520-A, the U.S.
owner must file a substitute Form 3520-A, including the
Foreign Grantor Trust Owner Statement (pages 3 and 4)
and the Foreign Grantor Trust Beneficiary Statement
(page 5), along with the U.S. owner’s Form 3520, by the
Form 3520 due date. The U.S. owner must also provide
copies of the Foreign Grantor Trust Owner Statement
(pages 3 and 4) and the Foreign Grantor Trust Beneficiary
Statement (page 5) to the U.S. owners and U.S.
beneficiaries by the Form 3520 due date. See the
Instructions for Form 3520 for the due date of Form 3520.
Caution: Only a complete Form 3520-A is considered
timely filed. Form 3520-A is considered complete only if all
required attachments are included.
Extension of time to file. File Form 7004, Application for
Automatic Extension of Time To File Certain Business
Income Tax, Information, and Other Returns, using the
foreign trust’s employer identification number (EIN), to
request an extension of time to file Form 3520-A. Form
7004 must be filed by the 15th day of the 3rd month
following the end of the trust’s tax year. See Form 7004 for
additional information.
Note: An extension of time to file an income tax return
does NOT extend the time to file Form 3520-A. You MUST
file Form 7004 using the foreign trust’s EIN to request an
extension of time to file Form 3520-A.

Where To File

File Form 3520-A, including the Foreign Grantor Trust
Owner Statement (pages 3 and 4) and the Foreign
Grantor Trust Beneficiary Statement (page 5), at the
following address.
Internal Revenue Service Center
P.O. Box 409101
Ogden, UT 84409

See the Instructions for Form 3520 for where to file a
substitute Form 3520-A attached to the U.S. owner’s Form
3520.

Who Must Sign

Form 3520-A must be signed by the trustee of the foreign
trust. If the trustee is a partnership, a partner or limited
liability company (LLC) member must sign Form 3520-A. If
the trustee is a corporation, the president, vice president,
treasurer, assistant treasurer, chief accounting officer, or
any other corporate officer authorized to sign must sign
Form 3520-A. However, if Form 3520-A is filed on behalf
of a trustee that is a partnership or corporation by a

2

receiver, trustee, or assignee, the fiduciary must sign the
return, instead of the partner, LLC member, or corporate
officer. A Form 3520-A signed by a receiver or trustee in
bankruptcy on behalf of a trustee that is a partnership or
corporation must be accompanied by a copy of the order
or instructions of the court authorizing signing of Form
3520-A.
A substitute Form 3520-A must be signed by the U.S.
owner. The U.S. owner’s name and taxpayer identification
number (TIN) must be provided on the “Title” line of the
signature box.
When using a paid preparer, the paid preparer must do
the following.
• Complete the required preparer information, including
their name, Preparer Tax Identification Number (PTIN),
and other identifying details.
• Sign the return in the space provided for the preparer’s
signature.
• Provide a copy of the return to the trustee or U.S. owner.

Inconsistent Treatment of Items

The U.S. beneficiary’s and U.S. owner’s tax returns must
be consistent with the Form 3520-A filed by the foreign
trust unless you report the inconsistency to the IRS. If the
U.S. beneficiaries or U.S. owners are treating items on
their tax returns differently from the way the foreign trust
treated them on its return, they must file Form 8082,
Notice of Inconsistent Treatment or Administrative
Adjustment Request (AAR). See Form 8082 for more
details.

Penalties

The U.S. owner is subject to an initial penalty equal to the
greater of $10,000 or 5% of the gross value, defined later,
of the portion of the trust’s assets treated as owned by the
U.S. person at the close of that tax year if the foreign trust
(a) fails to file a timely Form 3520-A, or (b) does not
furnish all of the information required by section 6048(b) or
includes incorrect information. See section 6677(a)
through (c).
If a foreign trust fails to file a Form 3520-A, the U.S.
owner must complete and attach a substitute Form
3520-A to the U.S. owner’s Form 3520 by the due date of
the U.S. owner’s Form 3520 (and not the due date for
Form 3520-A) in order to avoid being subject to a penalty
for the foreign trust’s failure to file a Form 3520-A. For
example, a substitute Form 3520-A that, to the best of the
U.S. owner’s ability, is completed and attached to the U.S.
owner’s Form 3520 by the due date for the Form 3520
(such as April 15 for the U.S. owners who are individuals)
is considered timely filed.
Additional penalties will be imposed if the
noncompliance continues for more than 90 days after the
IRS mails a notice of failure to comply with the required
reporting. If the IRS can determine the gross value,
defined later, of the portion of the trust’s assets treated as
owned by the U.S. person at the close of the tax year, then
the penalties will be reduced as necessary to assure that
the aggregate amount of such penalties does not exceed
the gross value of the trust. For more information, see
section 6677.
Instructions for Form 3520-A (Rev. 12-2025)

Criminal penalties may be imposed under sections
7203, 7206, and 7207 for failure to file on time and for
filing a false or fraudulent return.

services have an FMV of $20, the U.S. owner has
received a distribution of $80.

Note: If a U.S. owner of a foreign trust is subject to a 20%
penalty imposed under section 6662 for an underpayment
of tax required to be shown on a return, then such penalty
may be increased to 40% under section 6662(j) for any
portion of an underpayment that is attributable to any
transaction involving any asset with respect to which
information was required to be provided on Form 3520-A.
For more information about undisclosed foreign financial
asset understatements, see section 6662(j).

A foreign trust is any trust other than a domestic trust. A
domestic trust is any trust if:
1. A court within the United States is able to exercise
primary supervision over the administration of the trust,
and
2. One or more U.S. persons have the authority to
control all substantial decisions of the trust.

Reasonable cause. No penalties will be imposed if the
taxpayer can demonstrate that the failure to comply with
the reporting requirements was due to reasonable cause
and not willful neglect.

A grantor includes any person who creates a trust or
directly or indirectly makes a gratuitous transfer of cash or
other property to a trust. A grantor includes any person
treated as the owner of any part of a foreign trust’s assets
under sections 671 through 679, excluding section 678.

Note: The fact that a foreign country would impose
penalties for disclosing the required information is not
reasonable cause. See section 6677(d). Similarly,
reluctance on the part of a foreign fiduciary or provisions
in the trust instrument that prevent the disclosure of
required information is not reasonable cause.

Definitions
Distribution

A distribution received directly or indirectly from a foreign
trust for section 6048(c) reporting purposes is any
gratuitous transfer of money or other property from a
foreign trust, whether or not a portion of such trust is
treated as a grantor trust under the grantor trust rules of
sections 671 through 679, and without regard to whether
the recipient is designated as a beneficiary by the terms of
the trust. A distribution includes the receipt of trust corpus
and the receipt of a gift or bequest described in section
663(a).
A distribution also includes constructive transfers from
a foreign trust. For example, if a U.S. beneficiary, defined
later, or U.S. owner makes charges on a credit card that
are paid by a foreign trust or guaranteed or secured by the
assets of a foreign trust, the amount charged will be
treated as a distribution to that U.S. beneficiary or U.S.
owner by the foreign trust. Similarly, if a U.S. beneficiary or
U.S. owner writes checks on a foreign trust’s bank
account, the amount will be treated as a distribution. Also,
if a U.S. beneficiary or U.S. owner receives a payment
from a foreign trust in exchange for property transferred to
the trust or services rendered to the trust, and the fair
market value (FMV) of the payment received exceeds the
FMV of the property transferred or services rendered, the
excess will be treated as a distribution to that U.S.
beneficiary or U.S. owner. See section V of Notice 97-34,
1997-25 I.R.B. 22, available at IRS.gov/pub/irs-irbs/
irb97-25.pdf.
Example 1. If a U.S. beneficiary sells stock with an
FMV of $100 to a foreign trust and receives $150 in
exchange, the U.S. beneficiary has received a distribution
of $50.
Example 2. If a U.S. owner receives $100 from a
foreign trust for performing services for the trust, and the
Instructions for Form 3520-A (Rev. 12-2025)

Foreign Trust and Domestic Trust

Grantor

Note: If a partnership or corporation makes a gratuitous
transfer to a trust, the partners or shareholders are
generally treated as the grantors of the trust, unless the
partnership or corporation made the transfer for a
business purpose of the partnership or corporation.
If a trust makes a gratuitous transfer to another trust,
the grantor of the transferor trust is treated as the grantor
of the transferee trust, except that if a person with a
general power of appointment over the transferor trust
exercises that power in favor of another trust, such person
is treated as the grantor of the transferee trust, even if the
grantor of the transferor trust is treated as the owner of the
transferor trust.

Grantor Trust

A grantor trust is any trust to the extent that the assets of
the trust are treated as owned by a person other than the
trust. See the grantor trust rules in sections 671 through
679. A part of the trust may be treated as a grantor trust to
the extent that only a portion of the trust assets are owned
by a person other than the trust.

Note: Under the HIRE Act, effective after March 18, 2010,
if a foreign trust directly or indirectly loans cash or
marketable securities to a U.S. person who does not repay
the loan at a market rate of interest, or allows a U.S.
person to use trust property without paying FMV within a
reasonable period of time, the trust will be treated as
having a U.S. beneficiary and is therefore treated as a
grantor trust under the grantor trust rules. See section
679.

Gross Value

Gross value is the value of property as determined under
section 2512 and its regulations, without regard to any
prohibitions or restrictions on a person’s interest in the
property. See section VII of Notice 97-34. Although formal
appraisals are generally not required, you should keep
contemporaneous records of how you arrived at your
good faith estimate.

Nongrantor Trust

A nongrantor trust is any trust to the extent that the assets
of the trust are not treated as owned by a person other
3

than the trust under the grantor trust rules in sections 671
through 679. Thus, a nongrantor trust is treated as a
taxable entity. A trust may be treated as a nongrantor trust
with respect to only a portion of the trust assets. See
Grantor Trust, earlier.

Owner

An owner of a foreign trust is the person that is treated as
owning any of the assets of a foreign trust under the
grantor trust rules.

Property

AUTHORIZATION OF AGENT
[ Name of foreign trust ] hereby expressly authorizes [ name of
U.S. agent ] to act as its agent solely for purposes of sections
7602, 7603, and 7604 of the Internal Revenue Code with respect to
any request to examine records or produce testimony related to the
proper treatment of amounts required to be taken into account
under the rules of section 6048(b)(2)(A) or to any summons for such
records or testimony. I certify that I have the authority to execute
this authorization of agent to act on behalf of [ name of foreign
trust ].

Signature of trustee
(or other authorized person)

Property means any property, whether tangible or
intangible, including cash.

Your Name (type or print)

U.S. Agent

Taxpayer Identification Number (if any)

A U.S. agent is a U.S. person, defined later, that has a
binding contract with a foreign trust that allows the U.S.
person to act as the trust’s authorized U.S. agent, in
applying sections 7602, 7603, and 7604 with respect to:
• Any request by the IRS to examine records or produce
testimony related to the proper U.S. tax treatment of
amounts distributed, or required to be taken into account
under the grantor trust rules, with respect to a foreign
trust; or
• Any summons by the IRS for such records or testimony.
A U.S. grantor, a U.S. beneficiary, or a domestic
corporation controlled by the grantor or beneficiary may
act as a U.S. agent. However, a foreign trust will not be
treated as having a U.S. agent unless the U.S. agent’s
name, address, and TIN are entered on lines 3a through
3g of Part I of Form 3520-A. See Taxpayer identification
numbers (TINs), later.
If a foreign trust with a U.S. owner does not have a U.S.
agent, the IRS may redetermine the amounts required to
be taken into account with respect to the foreign trust by
the U.S. owner. See section 6048(b)(2). In order to avoid
this, a U.S. owner of a foreign trust should ensure that the
foreign trust appoints a U.S. person to act as the foreign
trust’s limited agent for purposes of applying sections
7602, 7603, and 7604. The agency relationship must be
established by the time the U.S. person files Form 3520-A
for the relevant tax year and must continue as long as the
statute of limitations remains open for the relevant tax
year.
In order to authorize a U.S. person to act as an agent
under section 6048(b), the trust and the agent must enter
into a binding agreement substantially in the format that
follows.

(title)

(date)

Address

[ Name of agent ] accepts this appointment to act as agent
for [ name of foreign trust ] for the above purpose. I certify that I
have the authority to execute this authorization of agent to act on
behalf of [ name of foreign trust ] and agree to accept service of
process for the above purposes.

Signature of agent

(title)

(date)

Your Name (type or print)
Taxpayer Identification Number (if any)
Address

Caution: Do not enter a PTIN on the Authorization of
Agent form.
If the U.S. person’s responsibility as an agent of the
foreign trust is terminated for any reason (for example,
resignation, liquidation, or death), the U.S. owner of the
foreign trust must make sure the foreign trust files an
amended Form 3520-A with the IRS within 90 days. See
section IV.B of Notice 97-34.

U.S. Beneficiary

A U.S. beneficiary generally includes any U.S. person that
could possibly benefit (directly or indirectly) from the trust
(including an amended trust) at any time, whether or not
the person is designated in the trust instrument as a
beneficiary and whether or not the person can receive a
distribution from the trust in the current year. In addition, a
U.S. beneficiary includes:
• A foreign corporation that is a controlled foreign
corporation (as defined in section 957(a)),
• A foreign partnership if a U.S. person is a partner of the
partnership, and
• A foreign estate or trust if the estate or trust has a U.S.
beneficiary. See section II of Notice 97-34 and the
regulations under section 679 for additional information.
Foreign trust treated as having a U.S. beneficiary. In
general, if a U.S. person, directly or indirectly, transfers
property to a foreign trust (other than a deferred
compensation or charitable trust described in section
6048(a)(3)(B)(ii)), the foreign trust will be treated as

4

Instructions for Form 3520-A (Rev. 12-2025)

having a U.S. beneficiary unless the terms of the trust
instrument specifically prohibit any distribution of income
or corpus to a U.S. person at any time, even after the
death of the U.S. transferor or any event terminating the
trust, and the trust cannot be amended or revised to allow
such a distribution. For these purposes, an amount will be
treated as accumulated for the benefit of a U.S. person
even if the U.S. person’s interest in the trust is contingent
on a future event and regardless of whether anything is
actually distributed to a U.S. person during that tax year.
Special rule in case of discretion to identify
beneficiaries. For purposes of the general rule above, if
any person has the discretion of making a distribution
from the trust to, or for the benefit of, any person, the trust
will be treated as having a beneficiary who is a U.S.
person, unless the terms of the trust specifically identify
the class of persons to whom such distributions may be
made, and none of those persons are U.S. persons during
the tax year.
Certain agreements and understandings treated as
terms of the trust. For purposes of the general rule
above, if any U.S. person who directly or indirectly
transfers property to the trust is directly or indirectly
involved in any agreement or understanding (whether
written, oral, or otherwise) that may result in the income or
corpus of the trust being paid or accumulated to, or for the
benefit of, a U.S. person, such agreement or
understanding will be treated as a term of the trust.
Certain loans or uncompensated use of trust
property. If a foreign trust is not already treated as having
a U.S. beneficiary under the rules described above, the
trust will be treated as having a U.S. beneficiary if, after
March 18, 2010, either:
• The foreign trust loans cash or marketable securities,
directly or indirectly, to a U.S. person and the U.S. person
does not repay the loan at a market rate of interest within a
reasonable period of time; or
• A U.S. person, directly or indirectly, uses property that is
owned by the foreign trust and does not pay FMV of the
use of such property within a reasonable period of time.
Presumption that foreign trust has U.S. beneficiary. If
a U.S. person, directly or indirectly, transfers property to a
foreign trust (other than a deferred compensation or
charitable trust described in section 6048(a)(3)(B)(ii)), the
IRS may treat such trust as having a U.S. beneficiary for
purposes of applying section 679(d) to such transfer if the
IRS requests information with respect to the transfer and
the U.S. person fails to demonstrate to the satisfaction of
the IRS that no portion of the income or corpus of the trust
may ever be paid to or accumulated for the benefit of a
U.S. person.

U.S. Person

A U.S. person is:
• A citizen or resident of the United States, including dual
residents who claim the benefits under an income tax
treaty;
• A domestic partnership;
• A domestic corporation;
• Any estate (other than a foreign estate, within the
meaning of section 7701(a)(31)(A)); and
• Any domestic trust (defined earlier).
Instructions for Form 3520-A (Rev. 12-2025)

For guidance on determining resident alien status, go
to Pub. 519, U.S. Tax Guide for Aliens.

Specific Instructions
Period Covered

For calendar-year filers, fill in the “calendar year” space at
the top of the form. For fiscal-year filers, fill in the “tax year
beginning” and “ending” spaces at the top of the form.

Initial Return, Final Return, Amended
Return, Extension Filed, Substitute
Form 3520-A
Initial return. If this is the foreign trust’s first return, check
the “Initial return” box.
Final return. If the foreign trust ceases to exist, check the
“Final return” box.
Amended return. If this Form 3520-A is filed to amend a
previously filed Form 3520-A, check the “Amended return”
box.
Extension filed. If the Form 7004 was timely filed to
request an extension for the Form 3520-A, check the
“Extension filed” box.
Substitute Form 3520-A. If you are a U.S. owner of the
foreign trust filing a substitute Form 3520-A and attaching
it to your Form 3520, check the “Substitute Form 3520-A”
box.

Excepted Specified Foreign Financial
Assets Reported

Check the box only if a U.S. person treated as the owner
of any portion of the trust under the grantor trust rules also
files Form 8938, Statement of Specified Foreign Financial
Assets, for the tax year and includes this form in the total
number of Forms 3520-A reported on line 16 of Part IV,
Excepted Specified Foreign Financial Assets, of Form
8938. For more information, see the Instructions for Form
8938, generally, and in particular, Duplicative reporting
and the specific instructions for Part IV.

Part I—General Information
Taxpayer identification numbers (TINs). Use social
security numbers (SSNs) or individual taxpayer
identification numbers (ITINs) to identify individuals. Use
EINs to identify estates, trusts, partnerships, and
corporations. Don’t use an SSN in place of an EIN.
Applying for an EIN. If the foreign trust doesn’t have an
EIN, the foreign trust may apply for one online at IRS.gov/
EIN. If the foreign trust’s principal place of business is
outside the United States or its territories, the foreign trust
can apply for an EIN by phone at 267-941-1099. See
International EIN applicants under Other ways to apply for
an EIN at IRS.gov/EIN.
Caution: Do not enter a PTIN in any entry space on Form
3520-A other than the entry space for “PTIN” at the bottom
of page 1 of the form.

5

Address. Include the room, suite, or other unit number
after the street address. If the post office does not deliver
mail to the street address and the U.S. person has a P.O.
box, show the box number instead.
Foreign address. Do not abbreviate the country name.
Line 1b. Enter the EIN of the foreign trust. Do not enter
an SSN or ITIN. Only an EIN should be used to identify
the foreign trust.
Line 2. Check “Yes” if the foreign trust appointed a U.S.
agent and enter the year the Authorization of Agent form
was last attached. See U.S. Agent, earlier, for the
Authorization of Agent form.
The Authorization of Agent form should be attached
every 3 years unless there has been a change, and if so, it
should be attached in the year with respect to which the
change relates.
Check “No” if the foreign trust did not appoint a U.S.
agent, and attach the following documents to Form
3520-A.
• A summary of the terms of the trust that includes a
summary of any oral agreements or understandings you
have with the trustee, whether or not legally enforceable.
• A copy of all trust documents (and any revisions),
including the trust instrument, any memoranda of wishes
prepared by the trustees summarizing the settlor’s wishes,
any letter of wishes prepared by the settlor summarizing
his or her wishes, and any similar documents.
• A copy of the trust’s organizational chart, including
ownership structure and percentage of ownership.
Note: If these documents have been attached to a Form
3520-A filed within the previous 3 years, attach only
relevant updates.
Lines 3a through 3g. Enter the name, TIN, and address
of the U.S. agent appointed. See U.S. Agent, earlier.
Line 5. Enter the number of Foreign Grantor Trust Owner
Statements (pages 3 and 4) included with this Form
3520-A.
Line 6. Enter the number of Foreign Grantor Trust
Beneficiary Statements (page 5) included with this Form
3520-A.
Sign here. The trustee of the foreign trust must sign the
Form 3520-A; however, if the U.S. owner of the foreign
trust is filing a substitute Form 3520-A, the U.S. owner
must sign. See Who Must Sign, earlier.

Part II—Foreign Trust Income
Statement

Include all income from U.S. and non-U.S. sources. This
financial statement must reasonably reflect the trust’s
income under U.S. income tax principles.

Income
Line 1. Interest. Report all taxable interest income that
was received during the tax year. Examples of taxable
interest include, but are not limited to, interest from the
following.

6

• Accounts (including certificates of deposit and money
market accounts) with banks, credit unions, and thrift
institutions.
• Notes, loans, and mortgages.
• U.S. Treasury bills, notes, and bonds.
• U.S. savings bonds.
• Original issue discount.
• Income received as a regular interest holder of a real
estate mortgage investment conduit (REMIC).
For taxable bonds acquired after 1987, amortizable
bond premium is treated as an offset to the interest
income instead of as a separate interest deduction. See
Pub. 550, Investment Income and Expenses.
Line 2. Dividends. Report all ordinary dividends
received during the tax year.
Note: Report capital gain distributions on Line 5. Capital
gains (losses) of this section.
Line 4. Income (loss) from partnerships, fiduciaries,
etc. Enter the trust’s share of income or (losses) from
partnerships, S corporations, estates, other trusts, and
REMICs.
If the trust received a Schedule K-1 from a partnership,
S corporation, or other flow-through entity, use the
corresponding lines on Form 3520-A to report the interest,
dividends, capital gains, etc., from the flow-through entity.
Line 5. Capital gains (losses). For capital gains or
(losses) attributable to a U.S. owner, use Schedule D
(corporate or individual, whichever applies) and Form
8949, Sales and Other Dispositions of Capital Assets, if
applicable.
Line 6. Ordinary gains (losses). Enter the ordinary gain
or (loss) from the sale or exchange of property other than
capital assets and also from involuntary conversions
(other than casualty or theft).
Line 7. Other income. Enter other items of income not
included on lines 1 through 6. List the types and amounts
on an attached statement if the trust has more than one
item.
Items to be reported on line 7 include any part of a total
distribution shown on Form 1099-R, Distributions From
Pensions, Annuities, Retirement or Profit-Sharing Plans,
IRAs, Insurance Contracts, etc., that is treated as ordinary
income. For more information, see the instructions for
Form 4972, Tax on Lump-Sum Distributions.

Expenses
Line 9. Interest expense. Enter the amount of interest
(subject to limitations) paid or incurred by the trust on
amounts borrowed by the trust, or on debt acquired by the
trust, that is not reported elsewhere in Part II.
If the proceeds of a loan were used for more than one
purpose (for example, to purchase a portfolio investment
and to acquire an interest in a passive activity), the
fiduciary must make an interest allocation according to the
rules in Temporary Regulations section 1.163-8T.
Do not include interest paid on indebtedness incurred
or continued to purchase or carry obligations on which the
interest is wholly exempt from income tax.
Instructions for Form 3520-A (Rev. 12-2025)

Line 10a. Foreign taxes. A foreign tax includes only a
tax imposed by the authority of a foreign country.
Line 10b. State and local taxes. Enter any deductible
state and local income or real property taxes paid or
incurred during the tax year that are not reported
elsewhere in Part II.
Do not deduct on line 10b or on any other line of Part II:
• Federal income taxes;
• Estate, inheritance, legacy, succession, and gift taxes;
or
• Federal duties and excise taxes.
Line 11. Amortization and depreciation (depletion). A
reasonable amount is allowed as a depreciation deduction
for the exhaustion, wear, and tear of:
• Property used in a trade or business, or
• Property held for the production of income.
Line 12. Trustee and advisor fees. Enter the deductible
fees paid or incurred to the fiduciary for administering the
trust during the tax year.
Line 13. Charitable contributions. Generally, any part
of the income reported on line 8 that is paid (or treated as
paid) during the tax year for a charitable purpose specified
in section 170(c) is allowed as a deduction. It is not
necessary that the charitable organization be created or
organized in the United States.
Line 14. Other expenses. Enter other items of expense
not listed on lines 9 through 13. List the type and amount
on an attached statement if the trust has more than one
item.
Line 17a. FMV of total distributions. Attach a
statement that provides the following information
concerning the transfer.
1. Name, U.S. TIN (if any), and country of organization
or residence of the person to whom the property was
transferred.
2. A general description of the transfer, and any
broader transaction of which it forms a part, including a
chronology of the transfers involved and an identification
of the other parties to the transaction to the extent known.
3. A description of the property transferred, including
the estimated FMV and the adjusted basis of the property.
4. A description of the consideration received by the
trust, including its estimated FMV, and for stock or
securities, the class or type, amount, and characteristics
of the interest received. If no consideration was received
by the trust, indicate whether the trust or a U.S. owner
exercises any powers over the entity to which the property
was transferred (including a description of such powers),
and identify the name, U.S. TIN (if any), and country of
organization or residence of all beneficial owners of such
entity.
5. To the extent known, a description of any
subsequent transfer of the property, including the name,
U.S. TIN (if any), and country of organization or residence
of the person to whom the property was subsequently
transferred.

(if any), and country of organization of all entities in which
the trust has an ownership interest, including an
ownership chart showing the trust’s position in the chain of
ownership and the percentages of ownership.
Note: The term “person” includes an individual or an
entity, whether U.S. or foreign. See the definition of U.S.
person, earlier. A foreign person is an individual or entity
that is not a U.S. person.
Lines 17b and 17c. Distributions to U.S. owners and
U.S. beneficiaries. Separately list the total amount of
distributions (including the uncompensated use of trust
property) to each U.S. owner and U.S. beneficiary. List the
full name, TIN, date of distribution, and FMV on the date
of distribution (dollar amount) for each U.S. owner and
U.S. beneficiary who receives a distribution. If more space
is needed, attach a statement.
Prepare a separate Foreign Grantor Trust Owner
Statement (see below) or Foreign Grantor Trust
Beneficiary Statement (see below) for each U.S. owner
or for each U.S. beneficiary who receives a distribution
from the trust.

Part III—Foreign Trust Balance Sheet
List all assets and liabilities of the trust, including those
assets and liabilities attributable to the portion(s) of the
trust (if any) not treated as owned by a U.S. person.

The balance sheet should reflect FMV. Include
certificates of deposit as cash on line 1.
For purposes of completing Part III, it is not necessary
or required to reconcile any differences between the book
and tax basis of assets and liabilities.
Line 18. Accumulated trust income. Include the total
amount of trust income accumulated and not distributed.

Foreign Grantor Trust Owner
Statement

Caution: On the top of each statement, fill in the tax year.
If the foreign trust has adopted a fiscal tax year, use the
calendar year in which the fiscal tax year begins.
A copy of this statement (pages 3 and 4 of Form
3520-A) must be (a) furnished to each U.S. person who is
treated as an owner of the foreign trust under the grantor
trust rules, and (b) included with this Form 3520-A. The
statement must be furnished to each U.S. owner no later
than the 15th day of the 3rd month following the end of the
trust’s tax year, or later if an extension of time to file is
granted, or if filing a substitute Form 3520-A. See When
and Where To File, earlier.
TINs and addresses. See the instructions for Part I,
earlier, for information on entering TINs and addresses.
Line 8. Trust documents. If the trust did not appoint a
U.S. agent, list the documents attached to the current year
Form 3520-A and those attached to a Form 3520-A filed
within the last 3 years. Specify the years the documents
were attached. See Line 2 under Part I, earlier, for a list of
documents the trust is required to attach to Form 3520-A.

The statement must also contain a description of the
trust ownership structure setting forth the name, U.S. TIN
Instructions for Form 3520-A (Rev. 12-2025)

7

Statement of Foreign Trust Income Attributable
to U.S. Owner

Caution: On the top of each statement, fill in the tax year.
For fiscal-year filers, use the year in which your fiscal tax
year begins.
The amounts on the statement must include the portion
of income reported by the foreign trust deemed
attributable to the U.S. owner.
The foreign trust may need to furnish to the U.S. owner
additional information, including applicable statements, to
ensure that the owner accurately reports income and
expenses on the owner’s U.S. income tax return.

Foreign Grantor Trust Beneficiary
Statement

Caution: On the top of each statement, fill in the tax year.
If the foreign trust has adopted a fiscal tax year, use the
calendar year in which the fiscal tax year begins.
A copy of this statement (page 5 of Form 3520-A) must
be (a) furnished to each U.S. beneficiary who receives a
distribution, directly or indirectly, from the foreign trust
during the tax year; and (b) included with this Form
3520-A. See the definitions for U.S. beneficiary and
distribution provided earlier in these instructions.

Exception. Do not complete this statement for a U.S.
person for any portion of the trust of which that U.S.
person is treated as the owner; instead, complete the
Foreign Grantor Trust Owner Statement for that U.S.
person (as described earlier).
The statement must be furnished to the U.S.
beneficiary no later than the 15th day of the 3rd month
following the end of the trust’s tax year, or later if an
extension of time to file is granted, or if filing a substitute
Form 3520-A. See When and Where To File, earlier.
TINs and addresses. See the instructions for Part I,
earlier, for information on entering TINs and addresses.

8

Paperwork Reduction Act Notice. We ask for the
information on this form to carry out the Internal Revenue
laws of the United States. You are required to give us the
information. We need it to ensure that you are complying
with these laws and to allow us to figure and collect the
right amount of tax.
You are not required to provide the information
requested on a form that is subject to the Paperwork
Reduction Act unless the form displays a valid OMB
control number. Books or records relating to a form or its
instructions must be retained for as long as their contents
may become material in the administration of any Internal
Revenue law.
The time needed to complete and file the form will vary
depending on individual circumstances. The estimated
average time is:
Recordkeeping . . . . . . . . . . . . . . . . .

37 hr., 18 min.

Learning about the law or the
form . . . . . . . . . . . . . . . . . . . . . . . . .

2 hr., 40 min.

Preparing and sending the form to
the IRS . . . . . . . . . . . . . . . . . . . . . . .

3 hr., 24 min.

If you have comments concerning the accuracy of
these time estimates or suggestions for making this form
simpler, we would be happy to hear from you. You can
send us comments through IRS.gov/FormComments. Or
you can send your comments to Internal Revenue Service,
Tax Forms and Publications Division, 1111 Constitution
Ave. NW, IR-6526, Washington, DC 20224. Do not send
the form to this office. Instead, see When and Where To
File, earlier.

Instructions for Form 3520-A (Rev. 12-2025)