Form 3520
Annual Return to Report Transactions with Foreign Trusts
Who Must File
US persons who are treated as owners of a foreign trust, receive distributions from a foreign trust, or make transfers to a foreign trust (including TFSA and RESP contributions).
Deadline
April 15 (extensions available with Form 1040 extension)
Penalty
Greater of $10,000 or 35% of the gross reportable amount for each failure
Step-by-Step Filing Instructions
Determine which Canadian accounts are treated as foreign trusts (TFSA, RESP, certain RRSPs).
Gather account statements showing contributions, distributions, income, and year-end balance.
Complete Part I if you transferred property to a foreign trust (TFSA contributions).
Complete Part III if you received distributions from a foreign trust.
Attach Form 3520-A or a substitute statement for each trust.
File separately from your Form 1040 with the IRS Ogden, UT service center.
Tips & Best Practices
The IRS treats a TFSA as a foreign grantor trust owned by the Canadian account holder.
Form 3520 is filed separately, not attached to Form 1040.
Consider dissolving your TFSA before becoming a US tax resident to avoid ongoing reporting.
The penalty for non-filing is severe; prioritize this form if you have a TFSA.
Frequently Asked Questions
Is my TFSA really a foreign trust?
Yes. The IRS treats TFSAs as foreign grantor trusts because they are not recognized under the Canada-US Tax Treaty like RRSPs are.
Do I file 3520 for my RRSP?
Generally no, if you have made a timely treaty election to defer RRSP income. However, if the RRSP holds non-standard investments, consult a professional.
What is the substitute statement for Form 3520-A?
Since Canadian trustees do not file 3520-A, US owners prepare a substitute statement containing the trust information required by the form.
Not sure which forms you need?
Answer a few questions and get a personalized checklist of every US and Canadian form required for your cross-border situation.
Start the Filing Wizard