Form 3520-A Filing Guide: When the Trustee Won't File — EIN Rules, Substitute Form 3520-A and the US Owner's Options

Form 3520 and Form 3520-A are forms that a person or entity may be required to submit under IRS requirements. If a required form is not submitted on time and there is no extension, a CP15 notice will be issued if the IRS catches the problem. The CP15 notice is what triggers the penalty assessment. Not every late filing results in a CP15 notice or a penalty.

In today’s globalized world, foreign-trust reporting can become complicated when a trustee does not file or provide records on time. If you are treated as the U.S. owner of a foreign trust, you still have annual reporting responsibilities. This guide explains the trust’s EIN requirement, the substitute Form 3520-A option, and practical steps you can take to address missing information.

Who must file Form 3520-A, and when is it due?

Form 3520-A is the annual information return for a foreign trust with at least one U.S. owner. A U.S. person treated as owning part of a trust under the grantor-trust rules must ensure the trust files the return and provides the required owner and beneficiary statements. The IRS instructions for Form 3520-A explain the filing and statement requirements. For a broader comparison, see Form 3520-A vs. Form 3520: Which Filing Applies to You.

Form 3520-A is generally due on the 15th day of the third month after the end of the trust’s tax year. For a calendar-year trust, that is usually March 15. The trust may request an extension by timely filing Form 7004 using the trust’s EIN. An extension for your personal income tax return does not extend the trust’s Form 3520-A deadline.

Why does the foreign trust need its own EIN?

The foreign trust must be identified by its own employer identification number (EIN) on Form 3520-A and Form 7004. Do not use your Social Security number (SSN) or individual taxpayer identification number (ITIN) in place of the trust’s EIN. The IRS EIN guidance explains how an eligible applicant can request one, including international applicants.

Confirm that the EIN belongs to the trust and matches its filing records. Keep copies of the EIN confirmation, trust documents, financial statements, and correspondence with the trustee. Incorrect identification can delay processing or leave reporting incomplete.

What can you do if the trustee refuses or fails to file?

If the trust does not file Form 3520-A, the IRS instructions provide a substitute filing option. You can complete a substitute Form 3520-A to the best of your ability, check the substitute-form box, sign it as the U.S. owner, and attach it to your Form 3520. This is due by your Form 3520 deadline, not the trust’s March 15 deadline. Form 3520 is generally due on the 15th day of the fourth month after your tax year ends; the applicable due date may vary with your circumstances or a valid extension. Review the Form 3520 due-date guide.

The substitute filing is not a reason to leave Form 3520 blank. Complete Part II, report the trust information you can obtain, attach the substitute form, and provide required owner and beneficiary statements by the applicable Form 3520 due date. The IRS instructions for Form 3520 explain Part II and the attachment rules.

Take these steps promptly:

1. Request records in writing. Ask the trustee for the annual owner statement, financial information, and any beneficiary statements that apply. Keep dated copies of your requests and responses.
2. Gather available records. Collect trust agreements and amendments, prior returns, account statements, distribution records, and reliable asset valuations.
3. Complete the forms carefully. Identify the trust using its EIN, include required statements, and explain any figures you cannot verify. Do not guess without clearly documenting the basis for an estimate.
4. File and keep proof. Submit Form 3520 with the substitute Form 3520-A by your applicable deadline and retain a complete copy and evidence of timely delivery.

Under IRC section 6048(b), the reporting framework requires the trust to provide prescribed information to U.S. owners and certain beneficiaries. However, the U.S. owner remains responsible for ensuring required reporting is completed. A trustee’s silence does not, by itself, remove that responsibility.

What penalties and relief may apply?

A failure to file a complete and timely Form 3520-A can expose the U.S. owner to a significant penalty under IRC section 6677. Generally, when the relevant gross value is at least $10,000, the initial penalty is the greater of $10,000 or 5% of the gross value of the trust assets treated as owned by the U.S. person at year-end. If the failure continues more than 90 days after an IRS notice, additional penalties of $10,000 per 30-day period, or fraction, may apply. The aggregate penalty is generally capped at the applicable gross value. See IRM 20.1.9.14 and IRM 20.1.9.13.

Reasonable-cause relief may be available if you show that the failure was due to reasonable cause and not willful neglect; relief depends on the facts and is not guaranteed. A trustee’s refusal or delay, standing alone, generally does not establish reasonable cause. Keep evidence of your efforts, explain what prevented timely compliance, and describe how you corrected the issue. First-Time Abatement does not generally apply to Form 3520 or Form 3520-A penalties.

If you discover a delinquent return, review the IRS delinquent international information return procedures. The IRS directs taxpayers to file delinquent Forms 3520 and 3520-A under each form’s instructions; a reasonable-cause statement may be attached. If you have received an IRS penalty notice, follow its response instructions and deadlines. The reasonable-cause guide for Form 3520 penalties outlines how to organize supporting facts and records.

How can you keep Form 3520-A compliance on track?

Maintain a yearly calendar for the trust’s tax year, Form 7004 deadline, Form 3520-A filing, and delivery of required statements. Confirm who will obtain the trust’s EIN, prepare the return, and provide financial information. Review current filing status before the deadline, rather than assuming the trustee has completed the work.

DON'T KNOW WHERE TO START? A review of your notice and response can help clarify the next step. CONTACT US FOR AN INDIVIDUALIZED REVIEW OF YOUR FORM 3520-A OBLIGATIONS.

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