Don Farmer's Foreign Trusts & Accounting Method Changes for Forms

Overview

This intermediate-level course provides a focused review of federal reporting requirements related to foreign trusts and accounting method changes. Participants will examine filing obligations associated with Forms 3520 and 3520-A, including ownership, distribution, and reporting triggers. The course also addresses accounting method change procedures, including Form 3115 filing requirements, automatic versus nonautomatic changes, and §481(a) adjustments. Emphasis is placed on reporting mechanics, penalty exposure, procedural compliance, and common filing errors. Practical examples illustrate documentation considerations and IRS scrutiny areas.

Highlights

Overview of foreign trust reporting framework
Form 3520 reporting requirements
Transfers to foreign trusts
Ownership and distribution reporting
Form 3520-A filing obligations and related disclosures
Penalty provisions and documentation considerations
Overview of accounting method change procedures
Form 3115 filing mechanics
Automatic versus nonautomatic method changes
§481(a) adjustment principles
Common compliance errors and IRS examination focus areas

Prerequisites

None

Designed For

CPAs and tax professionals involved in the world of tax.

Objectives

Identify reporting requirements and filing triggers for Forms 3520 and 3520-A

Distinguish ownership and distribution reporting obligations related to foreign trusts

Differentiate automatic and nonautomatic accounting method changes

Analyze Form 3115 filing requirements and §481(a) adjustment calculations

Recognize compliance risks and penalty exposure associated with foreign trust reporting and accounting method changes