After what has been the most tumultuous year that many of us will ever recall, it is a good time to remind ourselves that the US tax system and its multiple deadlines have now gotten closer, with specifically the 15th September trust filing deadline tomorrow.
Whilst most tax forms for individuals are able to use the extended due date of the main US tax return (Form 1040), up to 15th October, foreign grantor trusts aren’t able to take advantage of this. They instead have a due date of 15th March annually, which is extended to 15th September by filing Form 7004.
At US Global Tax, we apply for this extension for all of our clients who it applies to, before 15th March each year.
The 15th September due date applies to Form 3520-A, which is filed on behalf of a US owner of a foreign grantor trust, such as a self-managed super fund or a family trust. This due date does not however apply to Substitute Form 3520-A, which is filed for other trusts such as Kiwisaver or some types of Australian superannuation.
The penalties for late filing of Form 3520-A can be very punitive, and are usually applied at $10,000 per form.
If your returns are prepared, but not yet filed, ensure that you get these posted tomorrow (15th September) at the very latest. The IRS accepts the postmarked date as the filing date, so if you do have any unfiled returns laying around, use this opportunity to get them posted ASAP.