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taxquestion11 · Sep 23, 2011, 12:13 PM

Is an employee provided fund account, (employer managed retirement account), in India considered "foreign trust" for form 3520 reporting?

AtlantaTaxExpert · Sep 24, 2011, 08:29 AM

It is NOT considered a foreign trust. Even it was, to be reported on Form 3520 required a minimum balance of $100K and to be reported on a FBAR, the balance must be at least $10,000.

Nadel · Sep 26, 2011, 03:46 AM

ATE -- has the IRS specifically ruled that an Indian employee retirement account is not considered a foreign trust ?

Also, an American person is required to report all transfers (i.e. contributions) to a foreign trust, and all distributions from foreign trusts. There is no 100K threshold at all, that is only for foreign gifts/estates from natural persons.

AtlantaTaxExpert · Sep 26, 2011, 08:29 AM

Okay, it is obvious that no matter WHAT I say, you are not going to believe me, so why do you not just send an email to the IRS and ASK; see link below.

http://www.irs.gov/help/page/0, id=133197,00.html

You can open a new email account just for this purpose and register the email under a phony name, so the IRS will have NO WAY to track you, yet you can get a definitive answer from the source.

Nadel · Sep 26, 2011, 08:36 AM

Say. What ? I asked you a simple, civil question. If there is some published guidance from the IRS on this, I would welcome it. And why the hell would I use a phony name to contact the IRS if I had such a question ?

But, you're right that I don't 'believe' you when you that there is a 100K requirement for form 3520 filing. That is completely wrong. Perhaps you should correct your mistakes instead of being defensive.

IntlTax · Sep 30, 2011, 12:19 PM

I agree that there is no 100K requirement with respect to reporting contributions to, or an interest in, a foreign trust. The 100K amount relates to the receipt of gifts or inheritances from nonresident alien individuals, an entirely different situation.

However, no Form 3520 is necessary if the trust is an "employees' trust." If the account is a foreign pension trust maintained by an employer, then no Form 3520 likely would be required, but an FBAR likely would be.