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Trust Deadline Approaching

by David Tzimenakis February 22nd, 2021
Clock - Tax Time

Hasn’t 2021 gone by quickly so far! We’re already in the latter half of February, and starting to lead up to the first major US tax deadline of the year, 15th March 2021.

This date is the initial deadline for reporting of Forms 3520-A, 1120, and other less commonly used forms.

The most common of these (for our clients) is Form 3520-A, which is an Annual Information Return of Foreign Trust With a U.S. Owner.

For any US citizen who has an interest in a foreign trust or self-managed super fund, this deadline applies to you. In recent years, the IRS have begun imposing punitive penalties ($10,000 USD) on those who file late, as their default approach. Needless to say, this ideally should be avoided.

Luckily, an extension of time to file can be obtained by filing Form 7004 for the non-US trust, before 15th March. The Form 7004 extends the time to file Form 3520-A until 15th September 2021.

For all clients who have engaged US Global Tax, we will file extensions at no cost. However, if you do not currently have an engagement with a tax professional, file Form 7004 today. It is a relatively straight forward form to complete.

It is important to note, some clients may notice Form 3520-A as part of their submission for Kiwisaver or Australian Superannuation. As this is considered a “substitute” 3520-A (ie the client doesn’t actually own the trust), the deadline falls on the ordinary tax filing date of 15th April or 15th June/October with extension.

If you need help with your US tax return preparation, call us today.

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