Form 3520 - Annual Return To Report Transactions

The form 3520 used to report certain transactions with foreign trusts and the receipt of significant gifts from foreign persons. It's an information return, meaning that it is generally not used to calculate tax liability but to report specific transactions or events to the Internal Revenue Service (IRS).

Here are some general points about Form 3520:

1. Foreign Trusts: If you are treated as the owner of any part of a foreign trust, you may need to file Form 3520 to report certain transactions with the trust.

2. Foreign Gifts: If you receive gifts from foreign individuals or entities that exceed a certain threshold, you may need to report these gifts on Form 3520. Note that not all gifts need to be reported, and there are specific rules and thresholds for reporting.

3. Penalties: Failure to file Form 3520 when required can result in substantial penalties. It's important to understand the filing requirements and deadlines.