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Guidance library: statutes, regulations and publications

Plain-language summaries of 16 official documents on foreign trusts, information reporting and treaties, each linked to the original text.

All documents

26 C.F.R. § 301.7701-7, Trusts26 C.F.R. 301.7701-7 defines domestic and foreign trusts through the court test and the control test, and ties that status to U.S. reporting for U.S. citizens.26 CFR § 301.7701-4, Trusts26 CFR § 301.7701-4 covers arrangements treated as trusts for U.S. federal tax purposes, including investment trusts and environmental remediation trusts.26 U.S.C. § 6048, Foreign trust informationA reference to 26 U.S.C. § 6048 for U.S. citizens, covering foreign trust events and owner and beneficiary reporting, and where to read the official text.26 U.S.C. § 672, Definitions and rulesA reference to 26 U.S.C. § 672 for U.S. citizens, covering trust-related definitions, attribution rules and the section's limited role in U.S. income treatment.26 U.S.C. § 674, Power to control beneficial enjoymentSection 674 treats a grantor as owner of part of a trust when the grantor or another person controls who enjoys principal or income, subject to exceptions.26 U.S.C. § 677, Income for benefit of grantor26 U.S.C. § 677 addresses when a grantor is treated as owner of a trust portion based on how its income may be used, and it includes a support exception.26 U.S.C. § 678, substantial owner rules26 U.S.C. § 678 describes when a person other than a trust grantor is treated as owner of part of a trust, with exceptions and a related cross-reference.26 U.S.C. § 679, foreign trusts with U.S. beneficiaries26 U.S.C. § 679 sets an ownership rule for foreign trusts with U.S. beneficiaries, defines a U.S. beneficiary and is linked to section 6048 reporting.26 U.S.C. § 7701, Definitions26 U.S.C. § 7701 defines terms used across the Internal Revenue Code, including United States person and foreign trust, with context for U.S. citizen reporting.IRS Foreign Trust Reporting RequirementsAn IRS reference page on foreign trust reporting, income tax rules, Forms 3520 and 3520-A, and related U.S. reporting for citizens and other U.S. persons.IRS page on gifts from foreign personsIRS reporting rules for gifts and bequests from foreign persons, with thresholds, Form 3520 filing information, and how gifts differ from trust distributions.Publication 519 (2025), U.S. Tax Guide for AliensPublication 519 is an IRS guide to U.S. federal income tax rules for nonresident and resident aliens. It describes alien tax status and return preparation.Publication 901 (09/2024), U.S. Tax TreatiesPublication 901 is an IRS quick reference to U.S. income tax treaties, their treatment of selected income, and where a U.S. citizen can find treaty texts.Rev. Proc. 2014-55 and Canadian retirement plansRev. Proc. 2014-55 explains treaty-based tax deferral for certain Canadian retirement plans and describes related U.S. income and information reporting rules.Rev. Proc. 2020-17 and foreign trust reportingRev. Proc. 2020-17 exempts certain tax-favored foreign retirement and nonretirement savings trusts from Form 3520 and Form 3520-A reporting under section 6048 when its eligibility conditions are met.Rev. Rul. 2008-40, Foreign Trust TransfersRev. Rul. 2008-40 is an IRS ruling on transfers from certain qualified retirement plans to foreign trusts and Puerto Rico plans, and income inclusion.

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In more detail

Proposed Treasury regulations under section 6048 distinguish annual trust reporting from information reported by a U.S. owner. The foreign trust annual return is Form 3520-A, while additional U.S. owner information is reported on Part II of Form 3520.[1]

The proposed regulations describe distribution reporting on Part III of Form 3520. For foreign trust distribution reporting, the proposed Treasury regulations define a distribution to include a direct or indirect transfer of property from a foreign trust to a U.S. person to the extent its value exceeds the fair market value of property or services the trust receives in exchange, regardless of grantor trust status or income tax consequences. The regulations are still proposed. The IRS allows taxpayers to rely on them for tax years ending after May 8, 2024 only if they apply them in full and consistently until final rules issue.[1][2]

Key points

Under the proposed rules, a loan of cash or marketable securities from a foreign trust to a U.S. person can count as a distribution for reporting purposes.[1]

Related reading

This page connects to 26 U.S.C. § 6048, Foreign trust information, which focuses on the statute behind foreign trust information reporting. IRS Foreign Trust Reporting Requirements covers the IRS reporting overview. IRS and FinCEN forms: reference pages provides related form references, while 26 C.F.R. § 301.7701-7, Trusts addresses how trusts are classified as domestic or foreign. Glossary of trust and U.S. reporting terms defines terms used across these materials.

Related glossary terms

  • Substantial decisions: Substantial decisions under a trust include nonministerial choices about distributions, beneficiaries, income, principal, trustee changes, and investments.

Related articles and guides

Tools and official documents

  • IRS and FinCEN forms: reference pages: Reference pages for 15 IRS and FinCEN forms tied to foreign trusts, foreign accounts and entities, built from the official forms and their instructions.
  • Foreign trust reporting role finder: Tick the roles that describe a connection to a foreign trust or foreign account to see the forms the IRS and FinCEN instructions discuss. Roles can overlap.
Sources and data notes
  1. public-inspection.federalregister.gov, Federal Register, Proposed Regulations on Foreign Gifts and Related Foreign Trust Reporting (REG-124851-23), 8 May 2024. https://public-inspection.federalregister.gov/2024-09434.pdf. Retrieved .
  2. govinfo.gov, Federal Register, Volume 89 Issue 90 (Wednesday, May 8, 2024). https://www.govinfo.gov/content/pkg/FR-2024-05-08/html/2024-09434.htm. Retrieved .

Dates in this block record when each source was read for this page.