Kea Posted September 13, 2011 Report Share Posted September 13, 2011 Client bought a house in Mexico through a Fideicomiso (Spanish for "Trust"). From my research, this seems to be a "grey area" in the law as to filing requirements, but I want to play it safe. (I wanted to bail on it completely but client couldn't find any other preparers with expertise in this area. And she's family ... ) I'm having trouble with Line 7 on Page 3 (Foreign Grantor Trust Owner Statement) -- Attach an explanation of the facts and law (including the section of the Internal Revenue Code) that establishes that the foreign trust (or portion of the foreign trust) is treated for US tax principles as owned by the US person. -- I'm already attaching the Fideicomiso per Part I Line 2b. The document will specify the owner. Do I need to include anything else? I'm not familiar with what section of the IRS code says something like "hey, the document says you own it & since you are a US citizen, the trust is owned by a US person." But I'm probably reading this wrong! Thanks! Quote Link to comment Share on other sites More sharing options...
joanmcq Posted September 19, 2011 Report Share Posted September 19, 2011 A tax attorney I spoke with regarding foreign retirement accounts said they and the Fideicomiso were the biggest areas on noncompliance he fixes. So I'd say, no grey area, it is a foreign trust. Quote Link to comment Share on other sites More sharing options...
Kea Posted September 19, 2011 Author Report Share Posted September 19, 2011 Thanks Joan. I want to file them to play it safe. The 3520A was sent without any direct answer to the Line 7 question in my OP. The 3520 is done but has not yet been mailed. Would this tax attorney mind if I asked some questions to make sure I file these correctly? I also want to make sure I am completing all necessary documents. I'm only using the 3520A & 3520, and not the 1041 or FBAR. Quote Link to comment Share on other sites More sharing options...
joanmcq Posted September 23, 2011 Report Share Posted September 23, 2011 His website is www.hodgen.com I emailed him questions regarding this and also spoke with him on the phone. Nice guy, and he is teaching a webinar this month on individual international tax. Quote Link to comment Share on other sites More sharing options...
Lynn EA USTCP in Louisiana Posted September 23, 2011 Report Share Posted September 23, 2011 Joan, I went to Hodgen's website - no info re the webinar. How do we get more information? Thank you, Lynn Quote Link to comment Share on other sites More sharing options...
Kea Posted September 23, 2011 Author Report Share Posted September 23, 2011 Joan, I couldn't find the webinar info, either. I did find one of his blog posts, where he also acknowledges the ambiguity of this law. Nevertheless, better safe than sorry. http://hodgen.com/faq-17-faq-18-deadline-is-august-31-2011/ Thanks for the link. I'll try to contact him next week to see if I completed the forms correctly. Quote Link to comment Share on other sites More sharing options...
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