Hello,
I just noticed there is a change in the language for line 20 in part II of form 3520 for the 2019 version of the form. Previously (2018 and before) it asked for "Name of other foreign trust owners, if any" and the instructions stated to enter names "other than yourself". Now line 20 asks for "Name of all foreign trust owners". Unfortunately, the 2018 instructions are the only ones posted so the change is not paired with updated instructions for now.
So for those of us filing our own form 3520 for TFSA's etc., it appears that we must put our own name and info on line 20 now. There is also line 20e that asks for the Relevant code section (see 2018 instructions). Section 674(a) seems appropriate, but I'm not sure if that would be the best section to note. Anyone have some thoughts on that matter?
3520 part II form change for 2019 (e.g. TFSA reporting)
Moderator: Mark T Serbinski CA CPA
Re: 3520 part II form change for 2019 (e.g. TFSA reporting)
thanks for the post.
Yes, it changes on the line 20 of 3520 for 2019.
Just read the instructions for 3520 2019:
Line 20. Enter information regarding any person, including yourself, who is considered the owner of any portion of the trust under the rules of sections 671 through 679. Also, enter in column (e) the specific Code section that causes you and any other person (as applicable) to be considered an owner for U.S. income tax purposes. See the grantor trust rules under sections 671 through 679.
what is the section code for RESP on line 20 Column e? it's the same code(674a) as TFSA reporting on the form 3520?
Thanks in advance.
Yes, it changes on the line 20 of 3520 for 2019.
Just read the instructions for 3520 2019:
Line 20. Enter information regarding any person, including yourself, who is considered the owner of any portion of the trust under the rules of sections 671 through 679. Also, enter in column (e) the specific Code section that causes you and any other person (as applicable) to be considered an owner for U.S. income tax purposes. See the grantor trust rules under sections 671 through 679.
what is the section code for RESP on line 20 Column e? it's the same code(674a) as TFSA reporting on the form 3520?
Thanks in advance.
Re: 3520 part II form change for 2019 (e.g. TFSA reporting)
Have you found this code for a RESP?
Thanks in advance
Thanks in advance
Re: 3520 part II form change for 2019 (e.g. TFSA reporting)
I read here that stay away from 3520 for RESP, RSP etc.
Do we need to declare these accounts as trust accounts?
Do we need to declare these accounts as trust accounts?
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nakubo.1974
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Ron.Henderson
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Re: 3520 part II form change for 2019 (e.g. TFSA reporting)
TFSA/RRSP/RESP accounts are supposedly not subject to FATCA reporting, so a US person who for whatever reason needs to file US taxes can always consider not declaring those accounts, hopefully avoiding the risk of 3520 form penalties.
Re: 3520 part II form change for 2019 (e.g. TFSA reporting)
Lili1234 wrote:
> Have you found this code for a RESP?
>
> Thanks in advance
I use 679, because I am a owner of Foreign trust, US person and have a US beneficiary, can directly or indirectly transfers property....
IRC § 679:
A United States person who directly or indirectly transfers
property to a foreign trust shall be treated as the owner for
his taxable year of the portion of such trust attributable to
such property if for such year there is a United States
beneficiary of any portion of such trust.
> Have you found this code for a RESP?
>
> Thanks in advance
I use 679, because I am a owner of Foreign trust, US person and have a US beneficiary, can directly or indirectly transfers property....
IRC § 679:
A United States person who directly or indirectly transfers
property to a foreign trust shall be treated as the owner for
his taxable year of the portion of such trust attributable to
such property if for such year there is a United States
beneficiary of any portion of such trust.