Foreign Trust Compliance Navigator
Form 3520/3520-A filing requirements, throwback tax calculations, interest charges, and reporting obligations for US beneficiaries and grantors of foreign trusts.
Your Role
👤 Beneficiary
You receive or are entitled to distributions from a foreign trust
🏛️ Grantor / Transferor
You transferred assets to a foreign trust or are treated as the owner
Trust Details
Foreign Trust Penalties
Form 3520 Penalty: 35% of gross value of property transferred to a foreign trust (grantor) OR 35% of distributions received (beneficiary). Minimum $10,000.
Form 3520-A Penalty: 5% of trust value per year for failure to file annual information return. Applies to grantor trusts.
Reasonable Cause: Penalties may be abated if you can demonstrate reasonable cause and not willful neglect. Document everything.