Form 3520-A
Annual Information Return of Foreign Trust with a U.S. Owner
Who Must File
The foreign trustee of a foreign grantor trust with a US owner; in practice, US owners of TFSAs and similar accounts prepare a substitute statement because Canadian trustees will not file.
Deadline
March 15 (extension available with Form 7004)
Penalty
Greater of $10,000 or 5% of the gross value of trust assets treated as owned by the US person
Step-by-Step Filing Instructions
Identify all foreign grantor trusts you own (primarily TFSA).
Obtain year-end account statements with balance, contributions, withdrawals, and income.
Prepare a substitute Foreign Grantor Trust Owner Statement since the Canadian trustee will not file.
Include the trust EIN (apply with Form SS-4 if needed) on the statement.
Calculate the income earned within the trust for the tax year.
Attach the substitute statement to your Form 3520.
File by March 15 or request an extension.
Tips & Best Practices
You will likely need to prepare a substitute statement because Canadian financial institutions do not file US forms.
Apply for a trust EIN using Form SS-4 well before the filing deadline.
Keep detailed records of all TFSA transactions for each calendar year.
Frequently Asked Questions
Who is supposed to file Form 3520-A?
The foreign trustee is responsible, but since Canadian institutions will not file, the US owner must prepare and attach a substitute statement to their Form 3520.
Do I need an EIN for my TFSA?
Yes. The IRS requires a separate EIN for each foreign trust. Apply using Form SS-4 and designate the entity type as a foreign trust.
Can I be penalized even though the Canadian trustee was supposed to file?
Yes. If no return or substitute statement is filed, the IRS can assess penalties against the US owner.
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