AICPA Urges IRS to Clarify Forms on Reporting of Foreign Trusts

The IRS should update and clarify the forms for reporting ownership of and transactions with foreign trusts, the American Institute of CPAs says.

Among other changes, the IRS should allow e-filing of Forms 3520 and 3520-A; make clear in the instructions to the forms when an employer identification number is required; and include a filing exemption for foreign pensions when deferral of tax on earnings is available under a tax treaty, the AICPA said in an Aug. 14 letter to the IRS that was publicly released Thursday.

• The changes would help taxpayers and practitioners understand the correct reporting and help ...