Are You Prepared for the Upcoming Trust Deadline?

Whilst many of our clients are still enjoying their summer break, here at The US Tax Team, we’re already into the thick of it for the 2024 tax season.

Of course, we’re still very early into the year, but our first deadline is fast approaching.

This deadline is for Form 3520-A, due on 15th March 2024.

For those unfamiliar with Form 3520-A, this is the Annual Information Return of Foreign Trust With a U.S. Owner.

For any US citizen who is a trustee of or has contributed to a non-US trust (such as an NZ family trust), Form 3520-A must be filed by 15th March.

Whilst Form 3520-A is also required to be filed for many KiwiSaver accounts, they are filed under an alternative system and not subject to the 15th March deadline.

As was widely publicized in the US tax field over recent years, Form 3520-A has very punitive and severe late filing penalties, which can be up to 25% of the value of the trust. For this reason, it is absolutely essential to avoid being a late filer.

But, if you cannot file your Form 3520-A by 15th March, fortunately you can file an extension of time to 16th September 2024.

This is obtained through filing Form 7004 with the IRS. At the US Tax Team, we file all extensions electronically for our clients, at no additional cost.

If you are required to file Form 3520-A, or will need an extension, you should prepare to do so as soon as possible. Alternatively, if you work with a US tax professional, ensure that they are prepared and plan to file this shortly.

If you have any questions regarding filing for your New Zealand trust or KiwiSaver, reach out to us today at 09-242-3445 or info@usatax.nz.