Friday, August 16, 2013
Marianne R. Kayan & Ashley A. Weyenberg recently published an article entitled, Foreign Trusts: Form 3520 and Form 3520-A: Filing Deadlines and Liability of a Decedent’s Estate, 27 Prob. & Prop. 56 (July/August 2013). Provided below is the introduction to the article:
The IRS requires certain U.S. persons to file informational returns to report their relationships to, and transactions with, foreign trusts. Internal Revenue Code § 7701(a)(30). This requirement also imposes the responsibility to file such informational trust returns on the estates of some deceased U.S. persons. Informational returns are just that, used to report certain information, but not to directly impose taxes. This article specifically explores the effects of these filing requirements on the executors of the estates of U.S. decedents, while also considering the effect of the open-ended Offshore Voluntary Disclosure Program (OVDP), offered by the IRS as an option to seek resolution of prior filing mistakes or omissions.