3.22.19  Foreign Trust System (Cont. 2)

3.22.19.8 
Section 03 - Form 3520

3.22.19.8.1  (01-01-2014)
Field 03-A - Name of Trust Creator (Line 5a)

  1. Field 03-A is a 40-position field that may be present.

  2. Field 03-A must have an entry if "1" is present in Field 01-J.

  3. See IRM 3.22.19.7.10(2) for correction procedures.

3.22.19.8.2  (01-01-2014)
Field 03-B - Trust Creator's Street Address (Line 5b)

  1. Field 03-B is a 35-position file that may be present.

3.22.19.8.3  (01-01-2014)
Field 03-C - Trust Creator's City (Line 5b)

  1. Field 03-C is a 22-position field that may be present.

3.22.19.8.4  (01-01-2014)
Field 03-D - Trust Creator's State (Line 5b)

  1. Field 03-D is a 2-position field that may be present.

3.22.19.8.5  (01-01-2014)
Field 03-E - Trust Creator's ZIP Code (Line 5b)

  1. Field 03-E is a 12-position field that may be present.

3.22.19.8.6  (01-01-2014)
Field 03-F - Trust Creator's Country Code (Line 5c)

  1. Field 03-F is a 2-position field that may be present.

    Caution:

    Always use the Country Code "CA" for Canada in Section 02 through 20.

3.22.19.8.7  (01-01-2014)
Field 03-G - Trust Creator's TIN Type (Line 5c)

  1. Field 03-G is a 1-position field that mmay be present if the entry in Field 03-H is an SSN or ITIN.

    Note:

    If Line 5c is blank, enter CCC "N " to bypass the EIN requirement.

3.22.19.8.8  (01-01-2014)
Field 03-H - Trust Creator's TIN (Line 5c)

  1. Field 03-H is a 9-position field that may be present.

3.22.19.8.9  (01-01-2014)
Field 03-I (i) - Trust Creator's Country Code (Line 6a)

  1. Field 03-I (i) is a 2-position field that must be present if there is an entry in Field 01-J, 01-K or 01-L.

    Caution:

    Always use the Country Code "CA" for Canada in Section 02 through 20.

3.22.19.8.10  (01-01-2014)
Field 03-J - Law Governs Trust Country Code (Line 6b)

  1. Field 03-J is a 2-position field that must be present if there is an entry in Field 01-J, 01-K or 01-L.

    Caution:

    Always use the Country Code "CA" for Canada in Section 02 through 20.

3.22.19.8.11  (01-01-2014)
Field 03-K - Date Trust Created (Line 6c)

  1. Field 03-K is an 8-position field that must be present if there is an entry in Field 01-J, 01-K or 01-L.

  2. Valid characters are numeric (0-9) only.

  3. Field 03-K is invalid when any of the following conditions are present:

    • Field contains less than 8 digits

    • It is not in the proper YYYYMMDD format

    • It is a future date

    • The month is not 01-12 or the day is not 01-31, depending upon the month

    Month Day
    01, 03, 05, 07, 08, 09, 10 and 12 01-31
    04, 06, 09 and 11 01-30
    02 01–28 (29 in leap year)

  4. If the taxpayer does not writ a complete date on a transcribed line or it was not coded, the ISRP will enter periods (....) to take the place of the missing date digits.

    Figure 3.22.19-8
    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Incomplete Dates - Form 3520

  5. When the day, month or year is missing and is required, enter the missing data as follows:

    • Missing day - Enter "01"

    • Missing month - Enter "01"

    • Missing year - Enter the year of the tax period

  6. The following table contains examples of what you may find on the Error Register or on the IDRS Screen.

    When ISRP enters It means, Therefore,
    .... the year is required, but missing enter the 4-digit year, 2011
    2011.. the taxpayer entered the year without the month enter the 2-digit month between 01-12, e.g., 201111
    2011.... the taxpayer entered the year without the month or day enter the 2-digit month between 01-12, or the 2-digit day between 01-31, e.g., 2011 0101
    ....11 the taxpayer entered the month without the year enter the 4-digit year, 201111
    ....1101 the taxpayer entered the month and day, but without the year enter the 4-digit year, e.g., 20111101
    ....11.. the taxpayer entered the month without the year or day enter the 4-digit year and the 2-digit day, e.g., 20111101

3.22.19.8.12  (01-01-2014)
Field 03-L - "Yes - No" Checkbox: Other Owners of Transferred Assets (Line 7a)

  1. Field 03-L is a 1-position filed that may be present.

  2. See IRM 3.22.19.26.2.3 for correction procedures.

3.22.19.8.13  (01-01-2014)
Field 03-M - Other Owner Name (Line 7b(i))

  1. Field 03-M is a 40-position field that may be present if there is an entry of "1" in Field 03-L.

  2. See IRM 3.22.19.7.10 (2) for correction procedures.

3.22.19.8.14  (01-01-2014)
Field 03-N - Other Owner Street Address (Line 7b(ii))

  1. Field 03-N is a 35-position field that may be present if there is an entry of "1" in Field 03-L.

3.22.19.8.15  (01-01-2014)
Field 03-O - Other Owner City (Line 7b(ii))

  1. Field 03-O is a 22-position field that may be present if there is an entry of "1" in Field 03-L.

3.22.19.8.16  (01-01-2014)
Field 03-P - Other Owner State (Line 7b(ii))

  1. Field 03-P is a 2-position field that may be present if there is an entry of "1" in Field 03-L.

3.22.19.8.17  (01-01-2014)
Field 03-Q - Other Owner ZIP Code (Line 7b(ii))

  1. Field 03-Q is a 12-position field that may be present if there is an entry of "1" in Field 03-L.

3.22.19.8.18  (01-01-2014)
Field 03-R - Other Owner Country Code of Residence (Line 7b(iii))

  1. Field 03-R is a 2-position field that may be present.

    Caution:

    Always use the Country Code "CA" for Canada in Section 02 through 20.

  2. See IRM 3.22.19.7.8 (2) for correction procedures.

3.22.19.8.19  (01-01-2014)
Field 03-S - Other Owner TIN Type (Line 7b(iv))

  1. Field 03-S is a 1-position field that must be present if a SSN or ITIN is present in Field 03-T.

3.22.19.8.20  (01-01-2014)
Field 03-T - Other Owner TIN (Line 7b(iv))

  1. Field 03-T is a 9-position field that must be present if there is an entry of "1" in Field 03-L.

3.22.19.8.21  (01-01-2014)
Field 03-U - Other Owner Relevant Code Section (Line 7b(v))

  1. Field 03-U is a 9-position field that may be present if there is an entry of "1" in Field 03-L.

  2. Valid characters are alpha (a-z), numeric (0-9), ampersand (&), hyphen (-) and blank.

  3. Correct coding and transcription errors. If no entry leave blank.

3.22.19.8.22  (01-01-2014)
Field 03-V - More Than One "Other" Owner Indicator

  1. Field 03-V is a 1-position field that must be present if there is more than one owner present in Field 03-U.

  2. Valid characters are "1" and blank.

    If... Then...
    Only one entry on Line 7b Leave Field 03-V blank.
    More than one entry on Line 7b Enter "1" in Field 03-V.

3.22.19.9  (01-01-2014)
Section 04 - Form 3520

  1. Section 04 alpha field designators, maximum field lengths, titles and return locations are as follows:

    Alpha Designator Field Length Title Location on Return
    04-A 1 YES - NO Checkbox Line 8
    04-B 1 YES - NO Checkbox Line 9a
    04-C 1 YES - NO Checkbox Line 9b
    04-D 1 YES - NO Checkbox Line 10
    04-E 1 YES - NO Checkbox Line 11a
    04-F 1 YES - NO Checkbox Line 11b
    04-G 8 Date of Transfer Line 11b(i)1
    04-H 40 Maximum Term Line 11b(ii)1
    04-I 12 Yield to Maturity Line 11b(iii)1
    04-J 12 FMV Line 11b(iv)1
    04-K 8 Date of Transfer Line 11b(i)2
    04-L 40 Maximum Term Line 11b(ii)2
    04-M 12 Yield to Maturity Line 11b(iii)2
    04-N 12 FMV Line 11b(iv)2
    04-O 8 Date of Transfer Line 11b(i)3
    04-P 40 Maximum Term Line 11b(ii)3
    04-Q 12 Yield to Maturity Line 11b(iii)3
    04-R 12 FMV Line 11b(iv)3
    04-S 1 Indicator - More Than 3 Entries Right Margin, Line 11b(iv)3
    04-T 1 YES - NO Checkbox Line 12

3.22.19.9.1  (01-01-2014)
Field 04-A - "Yes - No" Checkbox: Transfer Completed (Line 8)

  1. Field 04-A is a 1-position field that may be present. If Field 04-A contains an entry then Field 04-B, 04-C and 04-D must be completed.

  2. See IRM 3.22.19.7.9 (2) for correction procedures.

3.22.19.9.2  (01-01-2014)
Field 04-B - "Yes - No" Checkbox: Benefit to U.S. Beneficiary (Line 9a)

  1. Field 04-B is a 1-position field that may be present.

  2. See IRM 3.22.19.7.9 (2) for correction procedures.

3.22.19.9.3  (01-01-2014)
Field 04-C - "Yes - No" Checkbox: Can Trust be Revised to Benefit U.S. Beneficiary (Line 9b)

  1. Field 04-C is a 1-position field that may be present.

  2. See IRM 3.22.19.7.9 (2) for correction procedures.

3.22.19.9.4  (01-01-2014)
Field 04-D - "Yes - No" Checkbox: Continue as Owner After Transfer (Line 10)

  1. Field 04-D is a 1-position field that may be present.

  2. See IRM 3.22.19.7.9 (2) for correction procedures.

3.22.19.9.5  (01-01-2014)
Field 04-E - "Yes - No" Checkbox: Transfer in Exchange for Obligation (Line 11a)

  1. Field 04-E is a 1-position field that may be present.

  2. Valid characters are "1" , "2" , "3" and blank.

    • If the "Yes" checkbox is checked then Schedule A must contain entries.

    • If the "No" checkbox is checked then Schedule B must contain entries.

    If... Then...
    The "Yes" box is checked Enter "1" in Field 02-I.
    The "No" box is checked Enter "2" in Field 02-I.
    Both boxes are checked Enter "3" in Field 02-I.
    Neither box is checked Delete the entry from Field 02-I.

3.22.19.9.6  (01-01-2014)
Field 04-F - "Yes - No" Checkbox: Qualified Obligation (Line 11b)

  1. Field 04-F is a 1-position field that may be present.

  2. See IRM 3.22.19.9.5 (2) for correction procedures.

3.22.19.9.7  (01-01-2014)
Field 04-G - Date of Transfer (Line 11b(i))

  1. Field 04-G is an 8-position field that may be present.

  2. See IRM 3.22.19.8.11 for correction procedures.

3.22.19.9.8  (01-01-2014)
Field 04-H - Maximum Term (Line 11b(ii))

  1. Field 04-H is a 40-position field that may be present.

  2. Valid characters are alpha (a-z) and numeric (0-9).

  3. Correct coding and transcription errors, however, if no entry is present, leave it blank.

3.22.19.9.9  (01-01-2014)
Field 04-I (i)- Yield to Maturity (Line 11b(iii))

  1. Field 04-I (i) is a 12-position field that may be present.

  2. Valid characters are alpha (a-z) and numeric (0-9).

  3. Correct coding and transcription errors, however, if no entry is present, leave it blank.

3.22.19.9.10  (01-01-2014)
Field 04-J - Fair Market Value (FMV) of Obligation (Line 11b(iv))

  1. Field 04-J is a 12-position field that may be present.

  2. Valid characters are numeric (0-9) only.

  3. Entry may be positive or negative and dollars only.

  4. Correct coding and transcription errors, however, if no entry is present, leave it blank.

3.22.19.9.11  (01-01-2014)
Field 04-K - Date of Transfer (Line 11b(i))

  1. Field 04-K is an 8-position field that may be present.

  2. See IRM 3.22.19.8.11 for correction procedures.

3.22.19.9.12  (01-01-2014)
Field 04-L - Maximum Term (Line 11b(ii))

  1. Field 04-L is a 40-position field that may be present.

  2. Valid characters are alpha (a-z) and numeric (0-9).

  3. Correct coding and transcription errors, however, if no entry is present, leave it blank.

3.22.19.9.13  (01-01-2014)
Field 04-M - Yield to Maturity (Line 11b(iii))

  1. Field 04-M is a 12-position field that may be present.

  2. Valid characters are alpha (a-z) and numeric (0-9).

  3. Correct coding and transcription errors, however, if no entry is present, leave it blank.

3.22.19.9.14  (01-01-2014)
Field 04-N - Fair Market Value (FMV) of Obligation (Line 11b(iv))

  1. Field 04-N is a 12-position field that may be present.

  2. Valid characters are numeric (0-9) only.

  3. Entry may be positive or negative and dollars only.

  4. Correct coding and transcription errors, however, if no entry is present, leave it blank.

3.22.19.9.15  (01-01-2014)
Field 04-O - Date of Transfer (Line 11b(i))

  1. Field 04-O is an 8-position field that may be present.

  2. See IRM 3.22.19.8.11 (6) for correction procedures.

3.22.19.9.16  (01-01-2014)
Field 04-P - Maximum Term (Line 11b(ii))

  1. Field 04-P is 40-position field that may be present.

  2. Valid characters are alpha (a-z) and numeric (0-9).

  3. Correct coding and transcription errors, however, if no entry is present, leave it blank.

3.22.19.9.17  (01-01-2014)
Field 04-Q - Yield to Maturity (Line 11b(iii))

  1. Field 04-Q is a 12-position field that may be present.

  2. Valid characters are alpha (a-z) and numeric (0-9).

  3. Correct coding and transcription errors, however, if no entry is present, leave it blank.

3.22.19.9.18  (01-01-2014)
Field 04-R - Fair Market Value (FMV) of Obligation (Line 11b(iv))

  1. Field 04-R is 12-position field that may be present.

  2. Valid characters are numeric (0-9) only.

  3. Entry may be positive or negative and dollars only.

  4. Correct coding and transcription errors, however, if no entry is present, leave it blank.

3.22.19.9.19  (01-01-2014)
Field 04-S - More Than Three Obligations of a Related Trust Indicator

  1. Field 04-S is a 1-position field that must be present if there are more than three (3) entries reported on Schedule A (Line 11b(i)) or an attachment.

  2. Valid characters are "1" and blank.

    If... Then...
    Three or less entries on Line 11b(1) or on an attachment Leave Field 04-S blank.
    More than three entries on Line 11b(1) or on an attachment Enter "1" in Field 04-S.

3.22.19.9.20  (01-01-2014)
Field 04-T - "Yes - No" Checkbox: Extend Assessment (Line 12)

  1. Field 04-T is a 1-position field that may be present.

  2. See IRM 3.22.19.7.9 (2) for correction procedures.

3.22.19.10  (01-01-2014)
Section 05 - Form 3520

  1. Section 05 alpha field designators, maximum field lengths, titles and return locations are as follows:

    Alpha Designator Field Length Title Location on Return
    05-A 1 YES - NO Checkbox Line 13
    05-B 8 Date of Transfer Line 13(a)1
    05-C 40 Description of Property Transferred Line 13(b)1
    05-D 12 FMV: Property Transferred Line 13(c)1
    05-E 12 US Adjusted Basis Line 13(d)1
    05-F 12 Gain at Transfer Line 13(e)1
    05-G 12 Excess: 13(c)1 Minus 13((d)1 Minus 13(e)1 Line 13(f)1
    05-H 40 Description of Property Line 13(g)1
    05-I 12 FMV: Property Received Line 13 (h)1
    05-J 12 Excess: 13(c)1 Minus 13(h)1 Line 13(i)1
    05-K 8 Date of Transfer Line 13(a)2
    05-L 40 Description of Property Transferred Line 13(b)2
    05-M 12 FMV: Property Transferred Line 13(c)2
    05-N 12 US Adjusted Basis Line 13(d)2
    05-O 12 Gain at Transfer Line 13(e)2
    05-P 12 Excess: 13(c)2 Minus 13((d)2 Minus 13(e)2 Line 13(f)2
    05-Q 40 Description of Property Line 13(g)2
    05-R 12 FMV: Property Received Line 13(h)2
    05-S 12 Excess: 13(c)2 Minus 13(h)2 Line 13(i)2
    05-T 1 Indicator: More Than 2 Entries Right margin, Line 13(i)3
    05-U 12 Total Excess: (c) Minus (d) Minus (e) Line 13(f)4
    05-V 12 Total Verified  
    05-W 12 Total Excess: (c) Minus (h) Line 13(i)4
    05-X 12 Total Verified  
  2. Entries are required in Schedule B if:

    1. Field 01-J has an entry of "1" indicating there was a direct or indirect transfer of money or property during the year, or

    2. Field 04-E or Field 04-F has an entry of "2" indicating "No" response.

  3. Only the first two lines of data and any totals on Schedule B are transcribed; therefore, only the information on the first two data lines and the total lines require correction.

  4. If there are no transcription errors requiring correction in a must be present field, then correspond for the information using IDRS Letter 3653C. Use AC 3.

    Note:

    All notices and correspondence will be suspended until further notice except for correspondence needed to post the primary EIN. Please use no reply procedures to force posting.

  5. If the taxpayer does not reply:

    1. Enter CCC "C" in Field 01-G.

    2. Delete the entries in Section 05.

    3. Use Action Code 3 or 7.

3.22.19.10.1  (01-01-2014)
Field 05-A - "Yes - No" Checkbox: Transfer at Less Than FMV (Line 13)

  1. If Field 05-A has an entry of "1" then there must be an entry in Fields 05-B through 05-U. However, the taxpayer may only have one row entry. See IRM 3.22.19.10 paragraphs (2), (3), (4) and (5) for additional processing direction.

  2. See IRM 3.22.19.7.9 (2) for correction procedures.

3.22.19.10.2  (01-01-2014)
Field 05-B - Date of Transfer (Line 13, column (a))

  1. Field 05-B is an 8-position field that must be present if Field 05-A has an entry of "1" . See IRM 3.22.19.10 paragraphs (2), (3), (4) and (5) for additional processing direction.

  2. See IRM 3.22.19.8.11 (6) for correction procedures.

3.22.19.10.3  (01-01-2014)
Field 05-C - Description of Property (Line 13, column (b))

  1. Field 05-C is a 40-position field that must be present if Field 05-A has an entry of "1" . See IRM 3.22.19.10 paragraphs (2), (3), (4) and (5) for additional processing direction.

  2. Valid characters are alpha (a-z), numeric (0-9), hyphen (-) and blank.

  3. Enter up to forty (40) characters of the data the filer provides on the return or on an attachment.

3.22.19.10.4  (01-01-2014)
Field 05-D - FMV of Property Transferred (Line 13, column (c))

  1. Field 05-D is a 12-position field that must be present if Field 05-A has an entry of "1" . See IRM 3.22.19.10 paragraphs (2), (3), (4) and (5) for additional processing direction.

  2. Valid characters are numeric (0-9) only.

  3. Entry may be positive or negative and dollars only.

3.22.19.10.5  (01-01-2014)
Field 05-E - U.S. Adjusted Basis of Property Transferred (Line 13, column (d))

  1. Field 05-E is a 12-position field that must be present if Field 05-A has an entry of "1" . See IRM 3.22.19.10 paragraphs (2), (3), (4) and (5) for additional processing direction.

  2. Valid characters are numeric (0-9) only.

  3. Entry may be positive or negative and dollars only.

3.22.19.10.6  (01-01-2014)
Field 05-F - Gain Recognized at Time of Transfer (Line 13, column (e))

  1. Field 05-F is a 12-position field that must be present if Field 05-A has an entry of "1" . See IRM 3.22.19.10 paragraphs (2), (3), (4) and (5) for additional processing direction.

  2. Valid characters are numeric (0-9) only.

  3. Entry may be positive or negative and dollars only.

3.22.19.10.7  (01-01-2014)
Field 05-G - Excess Gain (Line 13, column (f))

  1. Field 05-G is a 12-position field that must be present if Field 05-A has an entry of "1" . See IRM 3.22.19.10 paragraphs (2), (3), (4) and (5) for additional processing direction.

  2. Valid characters are numeric (0-9) only.

  3. Entry may be positive or negative and dollars only.

3.22.19.10.8  (01-01-2014)
Field 05-H - Description of Property Received (Line 13, column (g))

  1. Field 05-H is a 40-position field that must be present if Field 05-A has an entry of "1" . See IRM 3.22.19.10 paragraphs (2), (3), (4) and (5) for additional processing direction.

  2. See IRM 3.22.19.10.3 (2) for correction procedures.

3.22.19.10.9  (01-01-2014)
Field 05-I (i) - FMV of Property Received (Line 13, column (h))

  1. Field 05-I is a 12-position field that must be present if Field 05-A has an entry of "1" . See IRM 3.22.19.10 paragraphs (2), (3), (4) and (5) for additional processing direction.

  2. Valid characters are numeric (0-9) only.

  3. Entry may be positive or negative and dollars only.

3.22.19.10.10  (01-01-2014)
Field 05-J - Excess FMV of Transfers Over Receipts (Line 13, column (i))

  1. Field 05-J is a 12-position field that must be present if Field 05-A has an entry of "1" . See IRM 3.22.19.10 paragraphs (2), (3), (4) and (5) for additional processing direction.

  2. Valid characters are numeric (0-9) only.

  3. Entry may be positive or negative and dollars only.

3.22.19.10.11  (01-01-2014)
Field 05-K - Date of Transfer (Line 13, column (a))

  1. Field 05-K is an 8-position field that may be present. See IRM 3.22.19.10 paragraphs (2), (3), (4) and (5) for additional processing direction.

  2. See IRM 3.22.19.8.11 (6) for correction procedures.

3.22.19.10.12  (01-01-2014)
Field 05-L - Description of Property Transferred (Line 13, column (b))

  1. Field 05-L is a 40-position field that must be present if Field 05-A has an entry of "1" . See IRM 3.22.19.10 paragraphs (2), (3), (4) and (5) for additional processing direction.

3.22.19.10.13  (01-01-2014)
Field 05-M - FMV of Property Transferred (Line 13, column (c))

  1. Field 05-M is a 12-position field that must be present if Field 05-A has an entry of "1" . See IRM 3.22.19.10 paragraphs (2), (3), (4) and (5) for additional processing direction.

  2. Valid characters are numeric (0-9) only.

  3. Entry may be positive or negative and dollars only.

3.22.19.10.14  (01-01-2014)
Field 05-N - U.S. Adjusted Basis of Property Transferred (Line 13, column (d))

  1. Field 05-N is a 12-position field that must be present if Field 05-A has an entry of "1" . See IRM 3.22.19.10 paragraphs (2), (3), (4) and (5) for additional processing direction.

  2. Valid characters are numeric (0-9) only.

  3. Entry may be positive or negative and dollars only.


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