Hello,
I have a annual Trust income (interest) distribution from a Foreign Trust
QUESTION 37- IRS Form 3520 Part III Schedule A37. Amount treated as accumulation distribution. Subtract line 36 from line 31. If zero, do not complete the rest of Part III-
In my situation it doesn't equal zero but I had no Accumulation distribution. Doesn't equal zero.
From the math my answer is not zero but I have NO annual accumulation distribution just annual distribution. If I do Schedule C - I owe tax. I have a NR from from Canada that states type 11 which is interest only. No accumulative distribution.
Note: No beneficiary Statement and in 9 years it's always been zero.
Also,
IRS Form 3520 Part III - QUESTION 30 -
30 Did you receive a Foreign Nongrantor Trust Beneficiary Statement from the foreign trust with respect to a distribution? Yes No N/A If “Yes,” attach the statement and complete either Schedule A or Schedule B below. See instructions. Also, complete Schedule C if you enter an amount greater than zero on line 37 or line 41a.
If “No,” complete Schedule A with respect to that distribution. Also, complete Schedule C if you enter an amount greater than zero on line 37.
If a foreign grantor trust, check “N/A.”
Also
THE IRS Form 3520 INSTRUCTIONS STATE:
Line 37. If there is an amount on line 37, you must also complete line 38 and Schedule C—Calculation of Interest Charge to determine the amount of any interest charge you may owe.
Note: No beneficiary Statement and in 9 years it's always been zero.
How do I handle this so i don't get penalized. Where can I find more info to support what I do. Please help!
Thanks
D
