By Nicholas S. Bahnsen
The CPA Journal
April 2020 Edition
In March 2020, the IRS announced an exemption to the information reporting requirements applicable to foreign trusts. Under this exemption, qualified individuals no longer need to report transactions with or ownership of applicable tax-favored foreign trusts on Forms 3520 and 3520-A. This article outlines the new exemption and the special procedures for requesting an abatement or refund of penalties previously assessed with respect to these tax-favored foreign trusts, and serves as a reminder that taxpayers may have still other filing and reporting requirements related to these trusts that remain unaffected by the exemption.
