Non-U.S. Trust and Estate

Foreign Trust Reporting

Are you a U.S. taxpayer with interests in foreign trusts? Navigating the intricate requirements for reporting foreign trusts to the IRS can be challenging, but our specialized tax services are designed to ensure compliance and peace of mind.

Here's how we can assist you:

1. Foreign Trust Identification and Classification:

We'll help you identify and classify any foreign trusts and estate in which U.S. citizens or residents are settlors, owners, trustees and beneficiaries. This includes determining whether the trust is a grantor trust, non-grantor trust, or foreign pension trust, as each classification has different reporting requirements and tax implications.

2. Form 3520 Filing Assistance:

U.S. taxpayers with interests in foreign trusts are required to file Form 3520 to report certain transactions with foreign trusts, including contributions, distributions, and ownership changes. Our team will assist you in preparing and filing Form 3520 accurately and on time, ensuring compliance with IRS regulations.

3. Form 3520-A Compliance Review:

For U.S. persons who are treated as owners of a foreign trust, the foreign trust itself must file Form 3520-A annually. We'll conduct a comprehensive review of the trust's compliance with Form 3520-A reporting requirements, including ensuring that the trust has a U.S.-responsible party, maintaining proper records, and providing accurate information to the IRS.

4. Tax Planning for Foreign Trusts:

Effective tax planning can help minimize the tax impact of foreign trust interests. We'll work with you to develop tax-efficient strategies, such as utilizing foreign tax credits, treaty provisions, and trust restructuring options, to optimize your tax position and ensure compliance with U.S. tax laws.

With Sunstone CPA's comprehensive tax services for foreign trust reporting to the IRS, you can navigate the complexities of foreign trust taxation with confidence. Contact us today to learn more about how we can assist you in meeting your reporting obligations and achieving your tax compliance goals.