I have 3 trust income sources to report which is same as past year. In addition, I also have a one time inheritance of more than $100k in 2023. This bequest is not a trust but from an individual UK citizen (not a US taxpayer).
1. Should the inheritance info be submitted on its own separate 3520 form with only part IV completed? (The 3 trusts already each have separate 3520 forms)?
2. For the preamble check boxes on page 1 section C , do I check both the 3rd and 4th boxes repeated on all 4 of the 3520s, or just the single check box that pertains to the trust income or bequest in question?
IRS instructions are not clear here as the form looks like an amalgamation of multiple foreign income use cases. Thanks
I recommend filing a separate 3520 for the inheritance to avoid any confusion.
For that transaction you complete Part 1 to include all applicable check boxes in A, B, and C plus the area between C and line 1. Complete all applicable sections of line 1 (1a-1k) and then you skip to page 6, part IV, Line 54.
For C, just check the section there that applies in this specific instance. (Individual, likely.)
Then sign and date the return.
I recommend filing a separate 3520 for the inheritance to avoid any confusion.
For that transaction you complete Part 1 to include all applicable check boxes in A, B, and C plus the area between C and line 1. Complete all applicable sections of line 1 (1a-1k) and then you skip to page 6, part IV, Line 54.
For C, just check the section there that applies in this specific instance. (Individual, likely.)
Then sign and date the return.