With the IRS 2020 changes around no longer needing to file a 3520+3520A for RESPs, are folks now answering Schedule B Part 3 (Foreign Accounts and Trusts) Question 3 as No?
The question states "During 2020, did you receive a distribution from, or were you the grantor of, or transferor to, a
foreign trust? If “Yes,” you may have to file Form 3520."
In years prior to the new rules the answer for an RESP would be YES (given that an RESP was probably considered a grantor trust), however now with the new rules should the answer be NO?
Thanks in advance.
Question - RESP new rule impact on schedule B Part 3 Question 8
Moderator: Mark T Serbinski CA CPA
Re: Question - RESP new rule impact on schedule B Part 3 Question 8
If you have no RRSP, then the answer would be "no". Remember, that hose with RRSPs still have to answer yes, even though they do not need to file 3520.
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