RESP and 3520 Reporting

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NM
Posts: 1
Joined: Mon Oct 26, 2009 5:09 pm

RESP and 3520 Reporting

Post by NM »

Does anyone know where I could find specific information on why the IRS requires that a RESP be reported on Form 3520? I have seen many website saying the IRS considers the RESP to be a trust and therefore, it must be reported. Where does the IRS say that it is a trust? I'm looking for fairly current information, if there is anything.
nelsona
Posts: 18678
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

IRS doesn't rule on each and every trust. RESPs are trusts, as are RRSPs. Trouble is RESPs have not been granted special trust and tax treatment by treaty.

So, they are taxable and reportable.

Keep looking, and let us know what you find. Alternatively, you could pay IRS for a private ruling that would give you the same answer.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
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