3520 no longer required for RESP?
Moderator: Mark T Serbinski CA CPA
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3520 no longer required for RESP?
Hi all - I just saw a note about this, but it hasn't been highlighted in this forum, probably due to other things going on in the world. I can't find the specific IRS document this relates to, but found a copule of articles like this one: https://www.andersentax.ca/blog/the-irs ... gn-trusts/ . Does this mean the 3520 is no longer required for an RESP? It doesn't seem like it negates the need for the 3520 for a TFSA, noting this has always been vague, of course.
Not a professional opinion.
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Re: 3520 no longer required for RESP?
Don't file 3520 for either TFSA or RESP. No good will come of it. Either pretend they are regular savings accounts or don't declare them at all, since they are supposedly not subject to FATCA reporting.
There was never an IRS requirement to file 3520s for these accounts, it was an invention of the compliance industry, which earned itself a lot of money in accounting fees. Then the IRS started generating $10k fines in error.
There was never an IRS requirement to file 3520s for these accounts, it was an invention of the compliance industry, which earned itself a lot of money in accounting fees. Then the IRS started generating $10k fines in error.
Re: 3520 no longer required for RESP?
That document at the bottom states Anderson has concluded TFSA's don't require a 3520A and indicates they have discussed this with the IRS.
I would really like to get a definitive answer on this.
I would really like to get a definitive answer on this.
Re: 3520 no longer required for RESP?
IRS probably doesn't want to issue a definitive ruling, since the status quo keeps lots of accountants (and IRS staff) employed processing 3520's.
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Re: 3520 no longer required for RESP?
3520 was never required for RESP accounts - this was the money-making invention by some genius in the tax compliance industry.