Form 3520

Department of the Treasury

Internal Revenue Service

Annual Return To Report Transactions With

Foreign Trusts and Receipt of Certain Foreign Gifts

OMB No. 1545-0159

For calendar year 1997, or tax year beginning , 19 , ending , 19 .

Check appropriate box(es): See Instructions. Initial return Final return Amended return

All information must be in English. Show all amounts in U.S. dollars. File a separate Form 3520 for each foreign trust.

1a b

2a c

5a c

6a

Name of U.S. person(s) filing return Identification number

Number, street, and room or suite no. (If a P.O. box, see instructions.)

City or town

Name of foreign trust (if applicable) Identification number (if any)

(a) You are a U.S. transferor who, directly or indirectly, transferred money or other property during the current tax year, to a foreign trust or 

(b) you held an outstanding obligation of a related foreign trust (or a person related to the trust) issued during the current tax year, that you

treated as a “qualified obligation” (defined on page 3 of the instructions) during the current tax year. See the instructions for Part I.

You are a U.S. owner of all or any portion of a foreign trust at any time during the tax year. See the instructions for Part II.

(a) You are a U.S. person who, during the current tax year, received a distribution from a foreign trust or (b) a related foreign trust held an

outstanding obligation issued by you (or a person related to you) during the current tax year that you treated as a “qualified obligation”

(defined on page 3 of the instructions) during the current tax year. See the instructions for Part III.

You are a U.S. person who, during the current tax year, received certain gifts or bequests from a foreign person. See the instructions for

Part IV.

Service Center where U.S. person filing this return files its income tax return ©

Part I Transfers by U.S. Persons to a Foreign Trust During the Current Tax Year (See instructions.)

Name of trust creator (if different

from line 1a)

Identification number (if any)

Country code of country where trust was created Country code of country whose law governs the trust Date trust was created

Under penalties of perjury, I declare that I have examined this return, including any accompanying reports, schedules, or statements, and to the best of my

knowledge and belief, it is true, correct, and complete.

Signature Title Date

Preparer’s signature Preparer’s identification number

Cat. No. 19594V Form 3520 (1997)

d Spouse’s identification number (see instr.)

Date

c

e f State or province g ZIP or postal code h Country

b Number, street, and room or suite no.

d City or town e State or province f ZIP or postal code g Country

b Address

4a Name of U.S. decedent (see instr.) b Address c TIN of decedent

b c

d Date of death e EIN of estate

Check box that applies to U.S. person filing return: Individual Partnership Corporation Trust Executor

File in duplicate. Instructions are separate.

Did the foreign trust appoint a U.S. agent (defined on page 3 of the instructions) who can provide the IRS with all

relevant trust information? Yes No

If “Yes,” complete lines 3a through 3g.

3

3a Name of U.S. agent b Identification number (if any) c Number, street, and room or suite no.

d City or town e State or province f ZIP or postal code g Country

Check all applicable boxes:

7a Will any other person be treated as the owner of the transferred assets after the transfer? Yes No

Name of other foreign

trust owners, if any

(a)

Address

(b)

Country of residence

(c)

Identification number,

if any

(d)

Relevant

code section

(e)

b

For Paperwork Reduction Act Notice, see page 10 of the instructions.

1997
Form 3520 (1997) Page 2

Part I ( Continued)

Yes No

11a

12

13

Schedule A—Obligations of a Related Trust (See instructions.)

During the current tax year, did you transfer property (including cash) to a related foreign trust in exchange for an

obligation of the trust or a person related to the trust? See instructions

If “Yes,” complete Schedule A, as applicable. If “No,” go to Schedule B.

Date of transfer giving rise to obligation

(a)

Maximum term

(b)

Yield to maturity

(c)

FMV of obligation

(d)

Note: You generally must answer “Yes,” if you checked “Yes” to question 11b.

Schedule B—Gratuitous Transfers (See instructions.)

During the current tax year, did you make any transfers (directly or indirectly) to the trust and receive less than

FMV, or no consideration at all, for the property transferred?

If “Yes,” complete columns (a) through (i) below and the remainder of Schedule B, as applicable.

If “No,” do not complete the remainder of Schedule B and go to Schedule C.

Date of

transfer

(a)

Description

of property

transferred

(b)

FMV of property

transferred

(c)

U.S. adj. basis

of property

transferred

(d)

Gain recognized

at time of

transfer

(e)

Excess, if any,

of column (c)

over the sum of

columns (d)

and (e)

(f)

Description

of property

received,

if any

(g)

FMV of property

received

(h)

Excess of

column (c) over

column (h)

(i)

Totals ©

Yes No

$

Yes No

With respect to each obligation you treated as a “qualified obligation” in line 11b: Do you agree to extend the

period of assessment of any income or transfer tax attributable to the transfer and any consequential income tax

changes for each year that the obligation is outstanding, to a date 3 years after the maturity date of the obligation?

b Was the obligation you received a qualified obligation? Yes No

If “Yes,” complete Schedule A with respect to that obligation. If “No,” go to Schedule B.

15 You are required to attach a copy of each sale or loan document entered into in connection with a transfer reported on line 13. If these

documents have been attached to a Form 3520 filed within the previous 3 years, attach only relevant updates.

b

Have you attached a copy of:

Sale document?

Loan document?

Yes No

Attached

Previously

Year

Attached

a

c Subsequent variances to original sale or loan documents?

Complete line 14 only with respect to a transfer prior to August 5, 1997, and only if: (a) you answered “No” to

lines 7a and 10, and (b) the amount in column (f), line 13 is greater than zero.

Was the transfer to an exempt transferee?

Check this box to make an election under section 1057

Check this box to make an election to apply principles similar to the principles of section 367

If you make the line 14c election, attach: (i) the information required under section 6038B, and (ii) a statement

explaining the application of principles similar to the principles of section 367 to the transfer.

14

a

b

c

Yes No

8 Was the transfer a completed gift or bequest? If “Yes,” see instructions Yes No

9a

b

Yes No

Yes No

Can any part of the income or corpus of the trust benefit, now or in the future, any U.S. beneficiary?

If “No,” could the trust be revised or amended to benefit a U.S. beneficiary?

10 Will you continue to be treated as the owner of the transferred asset(s) after the transfer? Yes No

$

Note: The FMV of an obligation (column (d)) is -0- unless it is a qualified obligation.
Form 3520 (1997) Page 3

Schedule C—FMV Transfers of Certain Appreciated Property Prior To August 5, 1997 (See instructions.)

23a Is the transfer to an exempt transferee? Yes No

b Check this box if you are making an election under section 1057

c Check this box to make an election to apply principles similar to the principles of section 367

If you make the line 23c election, attach the information required under section 6038B, and attach a statement

explaining the application of principles similar to the principles of section 367 to the transfer.

22 Date of transfer

(a)

Description of

property transferred

(b)

FMV of property

transferred

(c)

U.S. adj. basis of

property transferred

(d)

Gain recognized at

time of transfer

(e)

Excess of column

(c) over the sum of

columns (d) and

(e), if any

(f)

Did you make any transfers of property to the trust and receive at least FMV for the property transferred?

If you answered “Yes” to line 20a, did you immediately recognize all of the gain (if any) on the property transferred?

If “Yes,” go to Schedule D and do not complete the remainder of Schedule C. If “No,” complete the remainder of

Schedule C with respect to such transfer.

Yes No

Yes No

20a

b

16

Name of beneficiary

(a)

Address of beneficiary

(b)

Identification number, if any

(d)

You are required to attach a copy of all trust documents as indicated below. If these documents have been attached to a Form 3520-A

filed within the previous 3 years, attach only relevant updates.

U.S. beneficiary?

(c)

Yes No

b

Have you attached a copy of:

The trust instrument?

Memoranda or letters of wishes?

Summary of all written and oral agreements and understandings relating to the trust?

Subsequent variances to original trust documents?

Yes No

Attached

Previously

Year

Attached

a

c

d

f Other trust documents?

19

Name of trustee

(a)

Address of trustee

(b)

Identification number, if any

(c)

17

Name of other persons

with trust powers

(a)

Address of other persons with trust powers

(b)

Identification number, if any

(d)

Description of

powers

(c)

18

Note: Complete lines 16 through 19 only if you answered “No” to line 3.

Note: Complete this schedule only with respect to transfers prior to August 5, 1997, and only if you answered “No” to lines 7a and 10.

If “No,” go to Schedule E. Do not complete the remainder of Schedule C and skip Schedule D.

21 Was the transfer to a related foreign trust (defined on page 3 of the instructions)? Yes No

Totals © $

Part I ( Continued)

e Trust financial statements?
Form 3520 (1997) Page 4

Part III

Part II U.S. Owner of a Foreign Trust (See instructions.)

Name of other foreign

trust owners, if any

(a)

Address

(b)

Country of residence

(c)

Identification number,

if any

(d)

Relevant

code section

(e)

Country code of country where foreign trust

was created

(a)

Country code of country whose law governs the foreign trust

(b)

Date foreign trust was created

(c)

26

27

Did the foreign trust file Form 3520-A for the current year?

If “Yes,” attach the Foreign Grantor Trust Owner Statement you received from the foreign trust. If “No,” to the

best of your ability, complete and attach a substitute Form 3520-A for the foreign trust. See instructions for

information on penalties.

Enter the gross value of the portion of the foreign trust that you are treated as owning ©

Yes No

Distributions to a U.S. Person From a Foreign Trust During the Current Tax Year (See instructions.)

28

Cash amounts or FMV of property received, directly or indirectly, during the current tax year, from the foreign trust (exclude loans included on line 31).

Date of distribution

(a)

Description of property received

(b)

FMV of property received

(determined on date of

distribution)

(c)

29

30

Totals © $

$

Schedule E—Qualified Obligations Outstanding in the Current Tax Year (See instructions.)

25 Did you, at any time during the tax year, hold an outstanding obligation of a related foreign trust (or a person

related to the trust) that you treated as a “qualified obligation” in the current tax year?

If “Yes,” complete columns (a) through (e) below.

Date of original

obligation (a)

Tax year qualified

obligation first reported (b)

Amount of principal

payments made during

the tax year

(c)

Amount of interest

payments made during

the tax year

(d)

Does the obligation

still meet the

criteria for a

qualified obligation? (e)

Yes No

Yes No

Description of

property transferred,

if any

(d)

FMV of property

transferred

(e)

Excess of column (c)

over column (e)

(f)

a Sales of stock in trade (inventory)

b Sales of tangible property other than stock in trade

c Sales of property rights (patents, trademarks, etc.)

d Purchases of stock in trade (inventory)

e Purchases of tangible property other than stock in trade

f Purchases of property rights (patents, trademarks, etc.)

g Compensation paid for technical, managerial, engineering, construction, or like services

h Commissions paid

i Rents, royalties, and license fees paid

j Interest paid

k All other nongratuitous transfers not required to be separately identified above

l Total. Add lines 24a through 24k

Category of property transferred Aggregate fair market value

Part I Schedule D—FMV Transfers of Other Property Prior to August 5, 1997 (See instructions.)

24 Was the transfer to a related foreign trust (defined on page 3 of the instructions)?

If “Yes,” complete the following:

Yes No

Note: Complete this schedule only with respect to transfers prior to August 5, 1997, and only if you answered “Yes” to

line 20a and “No” to lines 7a and 10. Do not complete this schedule with respect to any transfer reported on line 22.

$

( Continued)
Form 3520 (1997) Page 5

Part III ( Continued)

Schedule A—Default Calculation of Trust Distributions (See instructions.)

42

Enter amount from line 33

43

Enter total distributions received from the foreign trust during the 3 preceding tax years (or the number of years

the trust has been a nongrantor trust, if fewer than 3)

45

Average distribution. Divide line 40 by 3 (or the number of years the trust has been a nongrantor trust, if fewer

than 3) and enter the result

46

Amount treated as accumulation distribution. Subtract line 42 from line 37. If -0- or less, enter -0- and do not

complete the rest of Part III

48

Number of years the trust has been a nongrantor trust (see instructions). ©

49

Compute applicable number of years of trust. Divide line 38 by 2 and enter here ©

Schedule B—Actual Calculation of Trust Distributions (See instructions.)

50

Enter amount from line 33

51

Amount treated as ordinary income in the current tax year

52

Amount treated as accumulation distribution. If -0- or less, enter -0- and do not complete the rest of Part III

53

Amount treated as capital gains in the current tax year

Amount treated as distribution from trust corpus

Enter any other amount received from the foreign trust (attach explanation)

Compute applicable number of years of trust. Divide line 52 by line 51 and enter here ©

39

Did you receive a Foreign Grantor Trust Beneficiary Statement from the foreign trust with respect to a distribution?

If “Yes,” attach the statement and do not complete the remainder of Part III with respect to that distribution.

40

Did you receive a Foreign Nongrantor Trust Beneficiary Statement from the foreign trust with respect to a distribution?

Yes No

Yes No

41

44

Multiply line 39 by 1.25

34

Amount treated as ordinary income earned in the current year. Enter the smaller of line 37 or line 41

47

Amount of foreign trust’s aggregate undistributed net income

Amount of foreign trust’s weighted undistributed net income

Date of original loan

transaction

(a)

Amount of actual principal

payments made during

the tax year

(c)

Amount of actual

interest payments

made during

the tax year

(d)

Does the loan still meet the

criteria of a qualified

obligation?

(e)

Yes No

38

37

36

35

Tax year

qualified obligation

first reported

(b)

Did the trust, at any time during the tax year, hold an outstanding obligation of yours (or a person related to you)

that you treated as a “qualified obligation” in the current tax year?

If “Yes,” complete columns (a) through (e) below with respect to each obligation.

Yes No

FMV of loans proceeds

(a)

Date of original

loan transaction

(b)

Maximum term of

repayment of

obligation

(c)

Interest rate

of obligation

(d)

Is the obligation a

“qualified obligation”?

(e)

Yes No 

FMV of obligation

(f)

Amount treated as distribution

from the trust (subtract

column (f) from column (a))

(g)

Note: You generally must answer “Yes” if you checked “Yes” in column (e) of line 31. 

With respect to each obligation you treated as a “qualified obligation” in line 31: Do you agree to extend the period

of assessment of any income or transfer tax attributable to the transaction, and any consequential income tax

changes for each year that the obligation is outstanding, to a date 3 years after the maturity date of the obligation?

Total distributions received during the current tax year. Add line 30, column (f), and line 31, column (g) ©

$

32

Yes No

33 $

During the current tax year, did you (or a person related to you) receive a loan from a related foreign trust (including

an extension of credit upon the purchase of property from the trust)? Yes No

31

If “Yes,” complete columns (a) through (g) below with respect to such loans.

Note: The FMV of an obligation (column (f)) is -0- unless it is a “qualified obligation.”

Total ©

If “Yes,” attach the statement and complete either Schedule A or Schedule B below. If “No,” complete

Schedule A with respect to that distribution.

If “No,” complete Schedule A.
Form 3520 (1997) Page 6

Description of property received

(b)

Date of gift

or bequest

(a)

FMV of property received

(c)

Total © $

Part IV U.S. Recipients of Gifts or Bequests Received During the Current Tax Year From Foreign Persons (See instructions.)

60

(e)

Yes No

During the current tax year, did you receive more than $100,000 during the tax year that you treated as gifts or

bequests from a nonresident alien or a foreign estate? See instructions regarding related donors

If “Yes,” complete columns (a) through (c) with respect to each such gift or bequest in excess of $5,000. If more

space is needed, attach schedule.

During the current tax year, did you receive more than $10,276 that you treated as gifts from a foreign corporation

or a foreign partnership? See instructions regarding related donors

If “Yes,” complete columns (a) through (g) with respect to each such gift. If more space is needed, attach schedule.

Date of gift

(a)

Name of donor

(b)

Address of donor

(c)

Identification number,

if any

(d)

Check the box that applies to the foreign donor

Corporation Partnership

Description of property received

(f)

FMV of property received

(g)

Do you have any reason to believe that the foreign donor, in making any gift or bequest described in lines 60 and

61, was acting as a nominee or intermediary for any other person? If “Yes,” see instructions.

Yes No

Yes No

61

62

54

55

56

57

Schedule C—Calculation of Interest Charge (See instructions.)

Enter accumulation distribution from line 43 or 47, as applicable

Enter partial tax on total accumulation distribution from line 28 of Form 4970

Combined interest rate imposed on the total accumulation distribution. See Table B on page 9 of instructions

Interest charge. Multiply the amount on line 55 by the combined interest rate on line 57

Tax attributable to accumulated distributions. Add lines 55 and 58. Enter here and as “additional tax” on your

income tax return

58

59

Part III ( Continued)

Enter applicable number of years of foreign trust from line 44 or 53, as applicable (round to nearest half-year). ©