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Question regarding form 3520 and Canadian RESP reporting.

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Question regarding form 3520...

Question regarding form 3520 and Canadian RESP reporting for trusts.I am Canadian who is now US resident.Before moving to the US and becoming US resident - I transferred my family RESP - to my parents - Canadians. By having the grandparents becoming the subscribers of the RESP, I am hopefully able to avoid the anual reporting of this as a trust by a US resident and I am no longer direclty connected to the trust and it was transferred while a CDN resident only.The beneficiaries are my children who are US citizens.My understanding is the only reporting now required is if any distributions are used - my child receiving the distribution would then report the income on 3520.Can you confirm if this is correct?

Accountant's Assistant: The Accountant will know how to help. Is there anything else the Accountant should be aware of?

Don't think so

Submitted: 2 years ago.Category: Tax
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3/22/2016
Tax Professional: Barbara, Enrolled Agent replied 2 years ago
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 6,137
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
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Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

Actually, TFSA, RDSP, and RESP plans are not trusts under U.S. law, and no filing of Form 3520 is required. However, the income/generated generated by the RESP is required to be reported on a U.S. citizen's tax return.

The following links contain excellent information which you will find helpful:

http://www.skltax.com/u-s-tax-implications-canadian-registered-plans/

http://www.collinsbarrow.com/en/cbn/publications/resp-and-tfsa-accounts-for-u.s.-citizens

Please let me know if you require further information or clarification.

Thank you and best regards,

Barb

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Tax Professional: Barbara, Enrolled Agent replied 2 years ago

Just following up with you to see if you have any other questions or concerns. If so, please come back to me here, and I will be happy to assist you.

Best regards,

Barb

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