Music. If you have a trust classified as a foreign trust under the Internal Revenue Code, please note that the term "offshore trust" is not found in the Internal Revenue Code. The correct technical term is "foreign trust". - If you have a foreign trust, certain very strict reporting is required by the Internal Revenue Service. First, you have to file a Form 3520. Additionally, you have to file a Form 3520-A. Furthermore, you must file a Form 1040 NR with the estate or trust in the upper right-hand corner checked. Lastly, you have to file the foreign account reporting form online for that trust. These are the minimum required reports that need to be filed. - It is important to note that while the person who created the trust (the grantor) is alive, the trust will not pay tax. This is because the grantor will report all of the income and deductions of the trust on his or her or its tax return here in the US and pay the tax on that here. Therefore, the trust doesn't pay tax, the grantor pays tax. - Upon the grantor's passing, the trust would then become a separate asset. Music.
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Video instructions and help with filling out and completing How Form 3520 Taxpayer
