The AICPA submitted comment letters to the IRS on Monday, Aug. 14, requesting improvements to two tax returns regarding foreign trusts.
The AICPA sent recommendations to the IRS on changes to Form 3520, Annual Return to Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts, and Form 3520-A, Annual Information Return of Foreign Trust With a U.S. Owner, and instructions.
Among the recommendations, the AICPA asked the IRS to update, add to, and clarify Form 3520 and Form 3520-A instructions and allow for the e-filing of both forms.
The AICPA also requested the clarification of the need for employer identification numbers, and the inclusion of an exemption from both forms for foreign pensions where deferral of tax on earnings is available under a tax treaty. Read more.