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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15301
Experience:  15years with H & R Block. Divisional leader, Instructor
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My uncle was a foreigner who died intestate in 2005. His property

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My uncle was a foreigner who died intestate in 2005. His property was fraudently sold prior to his death. I went to court to contest the sale in the country of his residence. I was his closest living relative.

The case for the title to the property was resolved through separate trials. I received a partial title in 2006 but did not complete the whole trial until Feb 2011 when I had full clean title.

Is it reasonable that Form 3520 isn't due until this year?
Submitted: 6 years ago.
Category: Tax
Expert:  Robin D. replied 6 years ago.

Robin D :

Hello and thank you for using Just Answer.
As one of the more confusing areas of US tax the Form 3520 is near if not at the top of the list.
Form 3520 is required to be filed by any U.S. person who is "…treated as the owner of any part of the assets of a foreign trust under the grantor trust rules." Thus, a grantor of a foreign trust must file this form every year in addition to Form 3520-A . So under this portion you apper to have been laible for filing when you resieved partial title.

Robin D :

You could fall back on the foreign countries laws as to whether you really had any ownership until the end.

Customer: The ownership had no priveliges since it was tied up in court. What would we considered a reasonable excuse to have not reported until 2011
Robin D :

The law of the other country that you were not an owner or received the authority over the property. If you can perhaps show that you did not recieve the ownership until 2011.

Robin D :

You may need to retain a tax professional in your area should you need to argue this point with the non reporting in past year.

Customer: I have court documents which state that the cases clearing the title were resolved in Feb 2011
Robin D :

Then if questioned those could be valuable. I cannot promise you that they will be all or enough.

Customer: What is your degree of familiarity around this form.
Robin D :

I have never had to professional argue this, so I suppose I would have to say strickly academic.

Customer: What is your degree of familiarity with this form? Have you dealt with it regularly to feel comfortable about IRS interpretation?
Robin D :

I do feel comfortable with my interpretation. Can I cite anytime when I argued a person's validity to not have filed (as your circumstance) no.

Robin D :

I feel comfortable with my interpretation. As I stated though, I have never argued this to IRS.

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