Page 185 - Individual Forms & Instructions Guide

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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
financial account. See the FinCEN Form file the form if the aggregate value of provided on line 7b. Attach a separate
114 instructions for exceptions. Don't foreign financial accounts exceeds statement if you need more space.
consider the exceptions relating to sig- $10,000 at any time during 2022. Do Line 8. If you received a distribution
nature authority in answering Question 1 not attach FinCEN Form 114 to your tax from a foreign trust, you must provide
on line 7a. return. additional information. For this purpose,
Other definitions. For definitions of For the due date and more informa- a loan of cash or marketable securities is
“financial interest,” “United States,” and tion about FinCEN Form 114, see generally considered to be a distribution.
other relevant terms, see the instructions FINCEN.gov. See the Instructions for Form 3520 at
for FinCEN Form 114. If you are required to file Fin- IRS.gov/Form3520 for details.
Line 7a—Question 2. See FinCEN ! CEN Form 114 but don't prop- If you were the grantor of, or trans-
Form 114 and its instructions at CAUTION erly do so, you may have to pay feror to, a foreign trust that existed dur-
FINCEN.gov to determine whether you a civil penalty up to $10,000. A person ing 2022, you may have to file Form
must file the form. Check the “Yes” box who willfully fails to report an account 3520.
if you are required to file the form. or provide account identifying informa- Don't attach Form 3520 to Form 1040
Check the “No” box if you aren't re- tion may be subject to a civil penalty or Form 1040-SR. Instead, file it at the
quired to file the form. equal to the greater of $100,000 or 50% address shown in its instructions.
If you checked the “Yes” box to of the balance in the account at the time If you were treated as the owner of a
Question 2 on line 7a, you must elec- of the violation. Willful violations may foreign trust under the grantor trust
tronically file FinCEN Form 114 with also be subject to criminal penalties. rules, you are also responsible for ensur-
Treasury's Financial Crimes Enforce- Line 7b. If you are required to file Fin- ing that the foreign trust files Form
ment Network. A U.S. person that has a CEN Form 114, list the name(s) of the 3520-A. Form 3520-A is due on March
financial interest in or signature authori- foreign country or countries in the space 15, 2023, for a calendar year trust. See
ty over foreign financial accounts must the Instructions for Form 3520-A at
IRS.gov/Form3520A for details.

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