The Form 3520 is used to report ownership of a foreign trust by a U.S. person, transactions with foreign trusts and gifts or bequests received from foreign persons. The Form 3520 not only includes persons but corporations, partnerships, foundations, and estates. An extension is automatically given for Form 3520 when the taxpayer files an extension for their income tax return.

The Form 3520-A gives a complete record of the trust’s activities, operations, and other relevant information. The U.S. owner is responsible to provide information about who received a distribution from the trust if in the U.S. and also must file a Substitute Form 3520-A if the trust does not file. Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information and Other Returns, must be filed to request an extension of time. Any tax from income on the Form 3520-A will be paid with the filers tax return.

Authority for these procedures include the following sections of the Internal Revenue Code (IRC) and their corresponding Treasury Regulations:

The Director, SP Office monitors operational performance for the Submission Processing campus.

The Operations Manager watches operational performance for their operation.

The team manager/lead monitors performance and ensuring employees have the tools to perform their duties.

The international team employees follow the instructions contained in this IRM and the updated IRM instructions.

Program Reports: The Monitoring Section under Submission Processing Program Management/Process Assurance monitors the ERS reports. Daily, weekly, and a periodic report is available to management through control-D Web Access to manage inventory and capture data for program planning and review. Refer to IRM 3.12.38, Error Resolution, BMF General Instructions, for a complete listing and description of ERS reports. Some of the reports for 3520 and 3520-A are:

Program Controls: The program Controls are measured by the following reviews:

Annual Review: This IRM is updated and reviewed annually to ensure accuracy and promote consistent tax administration. Review and concurrence are performed by affected offices according to the clearance process established in IRM 1.11.9, Internal management Documents, Clearing and Approving Internal Management Documents (IMD), prior to publishing.

A glossary of terms and acronyms can be found in Exhibit 3.22.19-10.

The following is a list of resources used by ERS tax examiners to complete the work:

The Internal Revenue Service (IRS) Restructuring and Reform Act of 1998 (RRA98), Section 3705(a), gives identification requirements for all IRS employees working tax-related matters.

All IRS employees who communicate by telephone, face-to-face, or any other method of correspondence with taxpayers or their personal representatives on tax-related matters must give (at a minimum) the following information:

When a taxpayer requests to speak with a specific employee who previously worked their inquiry or request, or complains about the level of service previously given, make every effort to resolve the taxpayer’s inquiry. If unable to resolve the issue, refer the inquiry using established procedures to the manager.

Secretaries, receptionists, or other people who answer the telephone in functional offices need to identify themselves and should give their badge identification (ID Card) number only if they are answering telephones which are routinely used to give tax or account information.

It is not necessary to repeat the badge identification (ID Card) number on a subsequent contact, when the nature of an employee’s work involves multiple contacts with the same taxpayer and the employee has given the taxpayer (either telephone or in-person) his or her badge identification (ID Card) number on the first contact.

The Taxpayer Advocate Service (TAS) is an independent organization within the Internal Revenue Service (IRS), led by the National Taxpayer Advocate. Its job is to protect taxpayers’ rights by striving to ensure that every taxpayer is treated fairly and knows and understands their rights under the Taxpayers Bill of Rights (TBOR). TAS offers free help to taxpayers, including when taxpayers face financial difficulties due to an IRS problem, when they are unable to resolve tax problems they haven’t been able to resolve on their own, or when they need assistance to address an IRS system, process, or procedure that is not functioning as it should. TAS has at least one taxpayer advocate office located in every state, the District of Columbia, and Puerto Rico.

TAS uses Form 12412, Operations Assistance Request (OAR). to start the OAR process of referring a case to the Wage and investment (W&I) Division, to affect the resolution of the taxpayer’s problem. For more information, refer to IRM 13.1.19, Taxpayer Advocate Service, Taxpayer Advocate Case Procedures, Advocating With Operations Assistance Request (OARs).

Refer taxpayers to TAS when the contact meets TAS criteria or when Form 911, Request for Taxpayer Advocate Service Assistance (and Application for Taxpayer Assistance Order), is attached and steps cannot be taken to resolve the taxpayers issue the same day.

The definition of "same day resolution" is within 24 hours. The following two situations meet the definition of "same day resolution" :

When making a TAS referral, use Form 911, and forward to TAS following your local procedures.

See IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria, for more information.

BMF Identification (ID) Theft is increasing. If a case is found with attachments or correspondence showing the taxpayer is a victim of "ID Theft" :

The manager/lead will expedite the case to the P&A staff for referral to one of the Submission Processing (SP) BMF ID Theft liaisons. The taxpayer must show that they are a victim of "ID Theft" ; do not send cases that are subject to Criminal Investigation (CI), Examination (Exam), or Fraud review.

Submit IRM deviations in writing following instructions from IRM 1.11.2.2.4, When Procedures Deviate from the IRM, and elevate through proper channels for executive approval.

Taxpayers may send tax return information via fax as part of return perfection even when submitting a signature. In circumstances where contact with the taxpayer was made and documented, faxed signatures are acceptable.

Contact with the taxpayer may be by telephone or correspondence. Follow local procedures to decide which method of contact to use.

Indicate the fax paragraph on the approved Correspondence Action Sheet to inform the taxpayer of the fax options.

Use the following resources to make sure you are speaking with the taxpayer or authorized representative before disclosing any tax information:

Before leaving any messages on a taxpayer’s answering machine, review:

IRC 6103 establishes the taxpayers right to privacy of tax information. You must be sure that you provide correct information to the correct taxpayer or authorized representative. Check IDRS Command Code (CC) CFINK for a power of attorney (POA).

Taxpayer returns and return information must remain confidential as provided for in IRC 6103, Confidentiality and disclosure of returns and return information. IRC 7431 provides civil damages for unauthorized disclosure of returns and return information. IRC 7213 and IRC 7213A provide criminal penalties for unauthorized disclosure or unauthorized inspection of returns and return information and require employees be discharged from duty if charged and convicted of these offenses.

For more information on General Disclosure Guidelines refer to IRM 21.1.3, Operational Guidelines Overview and for full discussions refer to IRM 11.3.1 Introduction to Disclosure through IRM 11.3.40, Disclosures Involving Trust Fund Recovery Penalty Assessments.

An Individual Taxpayer Identification Number (ITIN) is a tax processing number issued by the Internal Revenue Service. It is a nine-digit number that always begins with the number 9 and the fourth and fifth digits are within the following ranges: 50-65, 70-88, 90-92, and 94-99. The ranges are listed below.

IRS issues ITINs to individuals who must have a U.S. taxpayer identification number but who do not have and are not eligible to obtain a Social Security Number (SSN) from the Social Security Administration (SSA).

ITINs are issued regardless of immigration status because both resident and nonresident aliens may have U.S. tax return and payment responsibilities under the Internal Revenue Code.

Forward any Form W-7 and the required supporting documentation (e.g., passports, birth certificates, etc.) to the ITIN Unit located at the Austin Submission Processing Campus.

The purpose of this initiative is to achieve consistency in the Business Master File (BMF) Error Resolution System (ERS) processing IRMs.

Ogden, Kansas City, and paper Processing Branch, BMF Code and Edit and Error Resolution System (ERS) identified and developed topics for BMF Consistency.

A ♦ (diamond) before and after the subsection title shows BMF Consistency subsections.

Text in normal print is the common processes for BMF returns. The text in BOLD print is form specific and applies to this IRM only.

It is important to leave a legible Working Trail (or Action Trail) using blue ink for those who may work with the return later.

For Form 3520-A, write all Taxpayer Notice Codes (TPNCs) 90 on the front of the return in the upper left corner (or use Form 12648, Error Correction 90 TPNC).

If corresponding with a non-suspense letter, X and write the corrected money amounts to the left of each original point(s) of error. Write money amounts in dollars only or dollars and cents, as applicable. Arrowing is allowed for money amounts when there are no intervening entries between the arrow and the line to which the money is to be entered.

Leave a working trail on the return when changes are made to the following items:

When working Reject re-inputs, circle out any previous Action Codes shown on the front of the return, if no longer applicable.

When working Rejects, line through the DLN in red and write Voided with the date above the DLN, when voiding a return.

Documents on which the transcribed data failed one or more of the consistencies, math verification, or validity tests in the computer program.

The Error Register is made up of Sections and Fields that directly or indirectly relate to the Data Sections and items transcribed and input to the computer.

An error or reject record that had a correction input, but still contains an invalid or math error needing correction.

A part of a record containing data fields for a specific schedule or part of the source document.

Each Section is identified by a two-digit section number.

A field is a specific line of information picked up from a form, schedule, or other document.

A section on the Error Register contains a certain number of fields that always appear, whether the field contains an entry or is blank.

Each field is shown by an Alpha Indicator (letter) which is located at the beginning of each field.

A field is either FIXED (no field breaker) or VARIABLE (ends with a field breaker).

A field breaker is a special symbol which means the end of a variable field.

The most common field breaker is a plus sign (+), although some fields can end with a minus sign (-), indicating a loss or a refund.

The field breaker will always appear at the end of the field whether it contains data or not.

When changing the data in a field on the Error Register and you enter a positive field breaker, enter a comma (,) and not the plus sign (+).

When changing the data in a field on the Error Register and you enter a negative field breaker, enter a pound (#) sign and not the minus sign (-).

Do not line through a field breaker unless you are changing it to a different one.

When a section is added to the error register, only the fields which contain data are actually entered onto the register. The field breakers used would be the comma and/or pound sign, as required, but not the plus or minus sign.

A few fields on the error register do not end with a field breaker, or any other indication of the end of the field. These are known as "Fixed" fields. Information for these fields will be found in the IRM under each specific field explanation.

Action codes show that specific information is missing or that the record is to be rejected from processing. The Action Code must contain enough detail to show if correspondence needs to be sent to the taxpayer or specific in-house research or action required.

Only one action code may be entered in any one section of the Error Register to correct that section. The Action Codes valid for this program are, 2, 3, 4, 5, 6, 7, and 9.

Issue correspondence to resolve any conditions that cause the return to be unprocessable, per IRM instructions.

If Form 3520 or Form 3520-A are mailed between August 28, 2020, through October 31, 2023, accept a digital signature.

All taxpayer correspondence is governed by the guidelines in IRM 21.3.3, Incoming and Outgoing Correspondence/Letters. Correspondence includes all written communication from a taxpayer or their representative, excluding tax returns, whether solicited or unsolicited, and includes:

In all instances where you are instructed to correspond for missing information on Form 3520 or Form 3520-A, completely examine the return to ensure that all missing information is requested in the same letter. Initiate correspondence one time only.

Issue correspondence to resolve any conditions causing the return to be unworkable or unprocessable. Initiate correspondence with the primary U.S. taxpayer only (Form 3520, page 1, Lines 1a - 1h, or Form 3520-A, page 3, Lines 6a - 6g).

Form 3520 only: Always correspond using 3653C CAS, mark Line 1, on a blank Form 3520 return where the taxpayer says they have no activity to report.

A return must contain the following specific items before it is considered processable. If they are not present and cannot be found on the return or its attachments, then ERS will research IDRS, to locate the information to make the return processable.

Conditions which make a document unprocessable are:

Use the following instructions when processing special or nonstandard returns for Form 3520.

The primary goal in identifying tax returns for examination is to promote the highest degree of voluntary compliance. Examination gives support and helps Submission Processing (SP) with any questionable return found during processing. Exam has a vast multitude of programs and tolerance criteria already found in several IRM sections. SP can refer any questionable return to Exam, unless prohibited by instructions currently found in several IRMs.

These errors result when required data is missing, or when incorrect data is present.

These errors are shown by an asterisk (*) printed before the invalid field.

An asterisk may also be printed before a field for verification purposes.

Correction Procedures:

These errors include:

These errors are caused when the computer computation differs from the taxpayer’s computation or the transcribed amount.

Math Errors occur when:

When a math error occurs,

Use the "verified" field to bypass the math check on loop.

If the transcription is correct, use Action Code "6" to enter the computers calculation in the "verified" field.

If the computer cannot compute the amount correctly (because there are more taxpayer entries than can be transcribed),

To correct math/consistency errors:

An invalid correction attempt error is caused by:

A complete description of invalid attempts may be found in IRM 3.12.38, BMF General Instructions for Campus Error Resolution.

When an invalid correction attempt is detected, "AA" is printed to the right of the Batch Number on the Document Identification Line of the Loop Error Register.

If the cause of the invalid correction attempt can be determined, correct the Loop Error Register as if no attempt had been made to correct it before.

If the cause of the invalid correction attempt cannot be determined, enter Action Code "7" .

To correct illegible or missing data:

Rejects will input a Notice of Action on the Master File as discussed below by using IDRS Command Code REQ77/FRM77 when:

Field 01-A is a four-position field that must be present.

Valid characters are alpha (a-z), numeric (0-9), ampersand (&), hyphen (-), and blank.

Change a slash (/) or decimal point (.) in the Name Control to a hyphen (-). Use the hyphen when performing research.

The name control comes from the name on Line 1a.

A filer may be:

If Field 01-A underprints, verify Field 01-B contains the proper indicator:

To delete an entry in Field 01-B,

If the field underprints with a different name control (not "XXXX" ):

If the Name Control underprints with "XXXX" :

Whether the EIN/SSN is written in orange or not (e.g., it is a taxpayer or Code and Edit (C&E) entry), verify that the Name Control and EIN/SSN are transcribed correctly.

Research to determine the correct Name Control and/or TIN in the following order:

If a change has been made to the first or second name line on a pre-addressed label, with no change to the TIN (e.g., No TC 013 appears in the upper left corner of the return):

If the taxpayer has changed the TIN on a pre-addressed label,

If it is ever necessary to use BMFOL to input a TC 013 for a name change, Form 3520 will not take a joint name (Husband and Wife) as the primary name on BNCHG. It must be one or the other, depending on who filed the return. If both names are on the return, use the first name shown.

Field 01-B is a one-position field that must be entered if the filers TIN is an SSN or ITIN.

Valid characters are "0" and blank.

If the field is missing or invalid on the Error Register, determine if the TIN provided by the filer is an SSN/ITIN or an EIN. See Figure 3.22.19-2 Tin Type (SSN).

Figure 3.22.19-2

TIN Type (SSN)Summary: This is an example of a completed section of a Form 3520, page 1. The completed line items of the form are listed. Following the form is a partial error register. Line B. Check box that applies to person filing return:the taxpayer checked the checkbox for Individualcheckbox Partnershipcheckbox Corporationcheckbox Trustcheckbox ExecutorAn I has been edited at the end of Line B.Check all applicable boxes:The received date IRS Received 04152024 is stamped in the middle of the following 4 checkboxes.Under the check all applicable boxes:The taxpayer checked the first box {A 1 has been edited before the first checkbox}: You are (a) a U.S. transferor who, directly or indirectly, transferred money or other property during the current tax year to a foreign trust; (b) a U.S. person who (1) during the current tax year, transferred property (including cash) to a related foreign trust (or a person related to the trust) in exchange for an obligation, or (2) holds a qualified obligation from the trust that is currently outstanding; or (c) the executor of the estate of a U.S. decedent and (1) the decedent made a transfer to a foreign trust by reason of death, (2) the decedent was treated as the owner of any portion of a foreign trust immediately prior to death, or (3) the decedent’s estate included any portion of the assets of a foreign trust. Complete all applicable identifying information requested below and Part I of the form.Line 1a. Name of U.S. person(s) with respect to whom this Form 3520 is being filed (see instructions): field contains Patty PinscherLine 1b. Taxpayer identification number (TIN): field contains 000-00-1956 Line 1c. Number, street, and room or suite no. If a P.O. box, see instructions: field contains 717 Terrier RdLine 1e. City or town: field contains Oklahoma CityLine 1f. State or province: field contains OKLine 1g. ZIP or foreign postal code: field contains 73125Line 1h. Country: field USASection 01 of the Error Register6 01 APINS B0 C000001956 D202312 E20240415 +F +G +H +II+ J0+ K1+L + M + N +..........PINK {This is the name control underprint}O + P+ Q +R + S + T +U717 TERRIER RD + VOKLAHOMA CITY+ WOK+ X73125 + Y + Z1+

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Figure 3.22.19-3

TIN Type (EIN)Summary: This is an example of a completed section of Form 3520, page 1. The completed line items of the form are listed. Following the form is a partial error register.Line B. Check box that applies to person filing return:checkbox Individualcheckbox Partnershipthe taxpayer checked the checkbox for Corporationcheckbox Trustcheckbox ExecutorA C has been edited at the end of Line B.Check all applicable boxes:The received date IRS Received 04122024 is stamped in the middle of the following 4 checkboxes.the taxpayer checked the 3rd checkbox {A 1 has been edited before the third checkbox} You are (a) a U.S. person (including a U.S. owner) or an executor of the estate of a U.S. person who, during the current tax year, received, directly or indirectly, a distribution from a foreign trust; (b) a U.S. person who is a U.S. owner or beneficiary of a foreign trust and in the current tax year, you or a U.S. person related to you received (1) a loan of cash or marketable securities, directly or indirectly, from such foreign trust, or (2) the uncompensated use of trust property; or (c) a U.S. person who is a U.S. owner or beneficiary of a foreign trust and in the current tax year such foreign trust holds an outstanding qualified obligation of yours or a U.S. person related to you. Complete all applicable identifying information requested below and Part III of the form.Line 1a. Name of U.S. person(s) with respect to whom this Form 3520 is being filed (see instructions): field contains White Coconut CorporationLine 1b. Taxpayer identification number (TIN): field contains 00-0087160Line 1c. Number, street, and room or suite no. If a P.O. box, see instructions: field contain 1418 Scarlet CTLine 1e. City or town: field contains Sioux FallsLine 1f. State or province: field contains SDLine 1g. ZIP or foreign postal code: field contains 57101Section 01 of the Error Register6 01 AWHIT B C000087160 D202312 E20240412+ F + G + H + IC+ J0+ K + L + M1+ N +.........BLUE {This is the name control underprint to correct the name control.}O + P + Q + R + S + T + U1418 SCARLET CT + VSIOUX FALLS+ WSD+ X57101+ Y + Z1+

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Sometimes on the Rejects Register, Field 01-B may be invalid because there is a "2" in the field. This is an occasional program problem, because the "2" should not be generated until the return posts (the "2" means the TIN is an EIN). This causes an unpostable condition (UNP 301) also. When this occurs, look at the TIN on the return and change the TIN indicator field: "0" for an SSN and blank for an EIN. If you blank the field, enter a "1" in a circle above it, as Field 01-B is a fixed field (no field breaker).

Field 01-C is a nine-position field that must be present.

Valid characters are numeric (0-9).

Field is invalid if any of the following conditions are present:

Entries in this field may be any of the following:

When researching an EIN, you may see any of the following at the end of the EIN:

Field 01-D is a six-position field that must be present. The tax period is on the preprinted label or edited in the upper right corner of the return, to the left of the pre-printed year in YYYYMM format. The fifth and sixth positions must contain a valid two-position numeric month designation (0-12).

Valid characters are numeric (0-9).

Field 01-D will be invalid if any of the following is present:

Form 3520 may be filed for either a calendar or fiscal year.

The Tax Period month will underprint if it is different from the month transcribed.

Figure 3.22.19-4

Reject Form 3520 to renumberingSummary: These are examples of completed sections of a 1996 Form 3520 and a current Form 4227. The completed line items of the forms are listed. Following the forms is a partial screen shot of the error register.Check proper box(es): See Instructions:the taxpayer checked the checkbox for Initial Returncheckbox Final Returncheckbox Amended ReturnCheck box that applies to U.S. person filing return:the taxpayer checked the checkbox for Individualcheckbox Partnershipcheckbox Corporationcheckbox Trustcheckbox ExecutorCheck all applicable boxes:The received date IRS Received 04152024 is stamped in the middle of the 4 checkboxes.Service Center where U.S. person filing this return files its income tax return: field contains Philadelphia PSCLine 1a. Name of U.S. person(s) filing return (see instructions): field contains Lauri GarterLine 1b. Identification number: field contains 000-00-1234Line 1c. Number, street, and room or suite no. (if a P.O. box, see instructions): field contains 3060 Viper LnLine 1e. City or town: field contains Des MoniesLine 1f. State or province: field contains IALine 1g. ZIP or postal code: field contains 50318Form 4227checked checkbox Other Activity field contains Doc Retention BranchOther (explain): field contains Tax Period Prior to 199812Section 01 of the Error Register3 01 AGART B0 C000001234 *D199612 E20240415+ F+ G +H +II + J + K + L + M + N+O + PPSC + Q + R + S + T +U3060 VIPER LN + VDESMOINES+ WIA+ X50318 + Y + Z +

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Field 01-E is an eight-position field that must be present.

Valid conditions for Field 01-E are:

Field 01-E is invalid when any of the following conditions are present:

Correct coding and transcription errors.

Use the following chart to select and enter the Received Date for returns addressed to IRS:

The Centralized Authorization File (CAF) indicator is no longer required to be entered.

If there is an entry in field 01-F delete it. Field 01-F will always be blank.

Field 01-G is a 10 - position field that may or may not be present.

Field 01-G is located in the upper section of Form 3520 to the right of the "Amended return" checkbox on Line B.

The valid characters for Field 01-G are: "C" (Do Not enter CCC "C" until further notice.), "F" , "G" , "I" "N" , "R" , "U" , "3" , "4" , and "5" .

Field 01-H is an eight-position field that may or may not be present.

The valid characters are numeric (0-9) in YYYYMMDD format or blank.

Field 01-H is invalid if any of the following is present:

Write the Correspondence Received Date above Line 1, Box b, Identification number, and enter it in Field 01-H when a reply to correspondence is received.

Review the attached correspondence to determine the reply received date.

Do not enter a date in Field 01-H if:

Field 01-I is a one-position field that must be present.

Valid characters are:

The Type of Return Code is located in the right margin next to the Executor box on Line B.

Correct Field 01-I as follows:

Field 01-J is a one-position field that may or may not be present.

Valid characters are “1” and "0" zero.

Field 01-J is invalid if an entry other than “1” or "0" zero is present.

Field 01-K is a one-position field that must be present if there are entries in Part I (Lines 5a through 19) of Form 3520, pages 2 and 3.

Valid characters are "1" and blank.

Field 01-K is invalid if an entry other than 1 is present.

Field 01-L is a one-position field that must be present if there are entries in Part 2 (Lines 20 through 23) of Form 3520, page 4.

Valid characters are "1" and blank.

Field 01-L is invalid if an entry other than 1 is present.

Field 01-M is a one-position field that must be present if there are entries in Part 3 (Sections 13 through 18) of Form 3520, pages 4 and 5.

Valid characters are "1" , "2" , and blank.

Field 01-M is invalid if an entry other than 1 or 2 is present.

Field 01-N is a one-position field that must be present if there are entries in Part 4 (Sections 19 and 20) of Form 3520, page 6.

Valid characters are "1" and blank.

Field 01-N is invalid if an entry other than 1 is present.

Valid characters are blank or 1.

Field 01-O is invalid if other than 1 or blank.

Correction Procedures:

Field 01-P is a six-position field that may be present.

Valid characters are alpha (a-z) and numeric.

Valid entries can be three to six positions.

Valid Form numbers are

Field 01-P is invalid if any of the following is present:

Correction Procedures:

Field 01-Q is a one-position field. Valid characters are "0" and blank.

If Field 01-R is an SSN or ITIN enter a 0 (zero) in Field 01-Q.

Blank Field 01-Q if Field 01-R is an EIN or blank.

Field 01-R is a nine-position field that may be present.

Valid characters are numeric (0-9) or blank.

Field is invalid if any of the following conditions are present:

Entries in this field may be any of the following:

Correct the field using the information provided on the return or on an attachment to the return.

Leave the field blank if the TIN cannot be determined.

Field 01-S is a 35 - position field that may or may not be present. If the "In-Care-of" Name is present, then enter it in Field 01-S.

The valid characters are alpha (a-z), numeric (0-9), ampersand (&), percent (%), hyphen (-) and slash (/).

Field 01-S is invalid if any of the following conditions are present:

Field 01-T is a 35 - position field for Form 3520 (or Field 02FAD for Form 3520-A) that may or may not be present.

Ogden Submission Processing Campus will work all foreign/international addresses and U.S. Territories returns.

The valid characters are alpha (a-z), numeric (0-9), hyphen/dash (-), slash (/) and blank.

Field 01-T (or Field 02FAD for Form 3520-A) is invalid if any of the following conditions are present:

The determination of a foreign address is based only on the address of the person filing the return.

A foreign address will contain:

See Exhibit 3.22.19-3, Province, state and Territory abbreviations, for the correct abbreviation if the address contains a state, province or territory from the following countries:

Returns with an address in the U.S. Territories are considered foreign returns for processing purposes but are entered in the same way as domestic addresses.

The U.S. Postal Service established new address requirements for Army Post Office (APO), Fleet Post Office (FPO), Diplomatic Post Office (DPO) addresses. If the old address appears (e.g., APO New York, NY 091XX), convert to the new state code abbreviation based on the ZIP Code (e.g., the previous example would be converted to APO AE 091XX). APO/FPO/DPO addresses are considered domestic addresses. Refer to conversion chart below:

Field 01-U is a 35 - position field for Form 3520 (or Field 02ADD for Form 3520-A) that must be present.

The valid characters are alpha (a-z), numeric (0-9), dash/hyphen (-), slash (/) and blank.

Field 01-U is invalid if any of the following conditions are present:

When entering either the mailing address or location address information, remember the following guidelines:

Enter Action Code "6" to the left of Section 01, when correcting the address.

Field 01-V is a 22 - position field that must be present.

When a foreign address is present, then the foreign country code will be entered in Field 01-V. See Document 7475, Section 5 for a list of valid foreign country codes.

Valid characters are alpha (a-z) and blank.

Field 01-V is invalid if any of the following conditions are present:

Correct coding and transcription errors, and refer to the following correction procedures:

Field 01-W is a two-position field that must be present.

The valid characters are alpha (a-z) and period.

If Field 01-W contains alpha, then the entry must be on the list of valid state codes.

If Field 01-W contains a period, then it must be followed by a blank and no other entry.

If the address is one of the U.S. States or a U.S. Territories, or Freely Associated States (see Figure 3.22.19-6), enter the valid state code from the list of valid state codes. See Document 7475.

Figure 3.22.19-7

Figure of a Period BlankThe following is an example of a partially completed page 3 of a Form 3520 and a partial error register. Certain items are circled, these are represented in brackets. The completed line items of the form are listed. Line 15 (a). Name of beneficiary: field contains Janice ShephardLine 15 (b) Address of beneficiary: field contains 213 Pointer Way; Tokyo {1} Japan JALine 15 (c) U.S. beneficiary: checked checkbox NoLine 15 (d) Identification number, if any: field contains none and 2 on the 2nd line to the right of the checkmarkLine 16(a) -- Name of trustee: field contains Diane PointerLine 16 (b) -- Address of trustee: field contains 325 Terrier Dr; Copenhagen {2} Denmark DALine 16 (c) -- Identification number, if any: field contains noneLine 17(a) -- Name of other person with trust powers: field contains Lisa SetterLine 17(b) -- Address of other person: field contains 1 Boxer Ln; Cork {3} Ireland IRLine 17(c) -- Description of powers: field is blankLine 17(d) -- Taxpayer identification number, Tin, if any: field contains noneScreen Shot of Section 07 and 08 of the Error Register6 07 AJANICE SHEPHARD + B213 POINTER WAY + CTOKYO +D.+{1} E + FJA+ G2+ H + I +J + K + L +M + N + O + P + Q + R +S + T + U+V + W + X + Y + Z +AA + BB +6 08 ADIANE POINTER + B325 TERRIER DR + CCOPENHAGEN +D.+{2} E + FDA + G + H + I+JLISA SETTER+ K1 BOXER LN + LCORK+M.{3} + N + OIR+ P + Q + R + S + T + U + V + W + X + Y +

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Field 01-X is a 12 - position field that must be present for all U.S. and U.S. Territory addresses. It must not be present for other foreign addresses.

The valid characters are numeric (0-9).

A minimum of five (5) digits must be entered when required but up to 12 digits can be entered.

Field 01-X is invalid when any of the following conditions are present:

Postal codes from any foreign country cannot appear in Field 01-X. Postal codes are part of the foreign address.

If Form 8822, Change of Address, or Form 8822-B, Change of Address or Responsible Party - Business, is attached to the return, compare the name and address information on the Form 8822 or Form 8822-B to the return.

Field 01-Y is a two-position field that must be present when Field 01-W contains a period in the first position.

Valid characters are alpha (a-z).

Field 01-Y is invalid when any of the following conditions are present:

If the Country Code is missing or invalid, enter the correct Country Code in Field 01-Y. See Document 7475, Section 5 for a list of valid Country Codes.

Field 01-Z is a one-position field that may be present.

Entries to this field can only be made during the error resolution process.

Valid characters are "1" , "2" , "3" and blank.

Enter the correct Entity Underprint Code in Field 01-Z to clear the underprint:

Field 02-A is a 40 - position field that must be completed if Field 01-L is checked.

Valid characters are alpha (a-z), numeric (0-9), ampersand (&), hyphen (-) and blank.

Field 02-B is a one-position field. Valid entries are 0 (zero) and Blank.

If Field 02-C is an SSN or ITIN enter 0 (zero) in field 02-B.

Blank Field 02-B if Field 02-C is an EIN or blank.

See IRM 3.22.19.8.3 for EIN exceptions.

Field 02-C is a nine-position field that must be present if Field 01-L is checked.

Field 01-D is a 35 - position field that may be present.

See IRM 3.22.19.7.20 Foreign Address, and IRM 3.22.19.7.21 and Street Address for correction procedures.

Field 02-E is an eight - position field that may be present.

Date must be entered in MMDDYYYY.

Correction Procedures:

Field 02-F is a 22 - position field that may be present.

See IRM 3.22.19.7.22 for correction procedures.

Field 02-G is a two-position field that may be present. See Document 7475.

Field 02-H is a 12 - position field that may be present. See Document 7475.

Field 02-I is a two-position field that may be present.

Valid characters are alpha (a-z).

Field 02-I is invalid if the field contains an entry other than alpha.

If the Country Code is missing or invalid, enter the correct Country Code in Field 02-I. See Document 7475, Section 5 for a list of valid Country Codes.

Field 02-J is a one-position field that may be present.

Valid characters are "1" , "2" , "3" and blank.

Field 02-K is a 40 - position field that must be present if Field 02-J is "1" (Question 3 checked "Yes" ).

Valid characters are alpha (a-z), numeric (0-9), ampersand (&), hyphen (-), percent (%) and blank.

Field 02-L is a one-position field. Valid entries are 0 (zero) and Blank.

If Field 02-M is an SSN or ITIN enter a "0" (zero) in Field 02-L.

"Blank" Field 02-L if Field 02-M, Line 3b on the return, is an EIN or blank.

Also see IRM 3.22.19.8.3 for EIN exceptions.

Field 02-M is a nine-position field that may be present if Field 02-J is "1" (Question 3 checked "Yes" ).

See IRM 3.22.19.8.3 for correction procedures.

Field 02-N is a 35 - position field that must be present if Field 02-J is "1" (Question 3 checked "Yes" ).

Field 02-O is a 22 - position field that must be present if Field 02-J is "1" (Question 3 checked "Yes" ).

Field 02-P is a two - position field that must be present if Field 02-J is "1" (Question 3 checked "Yes" ).

Field 02-Q is a 12 - position field that must be present if Field 02-J is "1" (Question 3 checked "Yes" ).

Field 02-R is a two - position field that must be present if Field 02-J is "1" (Question 3 checked "Yes" ).

Valid characters are alpha (a-z).

Field 02-R is invalid if the field contains and entry other than alpha.

If the Country Code is missing or invalid, enter the correct Country Code in Field 02-R. See Document 7475, Section 5 for a list of valid Country Codes.

Field 02-S is a 40 - position field that may be present.

See IRM 3.22.19.8.11 for correction procedures.

Field 02-T is a 35 - position field that must be present if there is an entry in Field 02-S.

Field 02-U is a 22 - position field that must be present if there is an entry in Field 02-S.

Field 02-V is a two - position field that must be present if there is an entry in Field 02-S.

Field 02-W is a 12 - position field that may be present.

Field 02-X is a two - position field that may be present.

Valid characters are alpha (a-z).

Field 02-X is invalid if the field contains and entry other than alpha.

If the Country Code is missing or invalid, enter the correct Country Code in Field 02-R. See Document 7475, Section 5 for a list of valid Country Codes.

Field 02-Y is a one - position field. Valid entries are 0 (zero) and Blank.

If Field 02-Z is an SSN or ITIN enter a "0" (zero) in Field 02-Y.

"Blank" Field 02-Y if Field 02-Z is an EIN or blank.

Field 02-Z is a 9 - position field that may be present.

Field 02-AA is an 8 - position field that may be present.

Valid characters are numeric (0-9) only.

Field 02-AA is invalid when any of the following conditions are present:

If Field 02-AA is incomplete or invalid, research INOLE for date of death. Use the Decedent SSN from Field 02-Z for researching.

Field 02-BB is a 9 - position field that may be present.

Field 02-CC is a one - position field that must be present if there are entries in Fields 02-S through 02-BB (Lines 4a through 4e).

Valid characters are:

Field 02-CC is invalid if entry is not "1" , "2" , "3" or "blank" .

If Field 02-CC is present and Lines 4a through 4e are not complete, correspond for the information using 3653C CAS. If no reply, enter CCC "3" in Field 01-G.

Field 03-A is a 40 - position field that may be present.

Field 03-A must have an entry if "1" is present in Field 01-K.

See IRM 3.22.19.8.11 for correction procedures.

Field 03-B is a 35 - position file that may be present.

Field 03-C is a 22 - position field that may be present.

Field 03-D is a two - position field that may be present.

Field 03-E is a 12 - position field that may be present.

The Country Code Field is a two-position field which is designated to identify treaty countries whose residents are entitled to refunds of U.S. withholding sourced income.

Code & Edit edits the Country Code to the right of the Entity Section of Form 3520. See Exhibit 3.22.19-5.

Use the following table in addition to the Exhibit:

Field 03-G is a one position field. Valid entries are "0" (zero) and "blank" .

If Field 03-H contains an SSN or ITIN enter a "0" (zero) in Field 03-G.

"Blank" Field 03-G if Field 03-H, Line 5c on the return, is an EIN or blank.

Field 03-H is a 9 - position field that may be present.

See IRM 3.22.19.8.3 for correction procedures.

Field 03-I is a two - position field that must be present if there is an entry in Field 01-K, 01-L or 01-M.

If Country Code is missing but present on Page 1 Line 2g, enter from line 2g.

Field 03-J is a two - position field that must be present if there is an entry in Field 01-K, 01-L or 01-M.

Field 03-K is an 8 - position field that must be present if there is an entry in Field 01-K, 01-L or 01-M.

Valid characters are numeric (0-9) only.

Field 03-K is invalid when any of the following conditions are present:

If the taxpayer does not write a complete date on a transcribed line or it is not coded, ISRP will enter periods (....) to take the place of the missing date digits.

Figure 3.22.19-8

Incomplete Dates - Form 3520Summary: This figure illustrates an example of incomplete dates on a Form 3520. Before Correction and After correction. Both before and after have a section of Form 3520, page 2 and a section of a screen shot of the error register.Before CorrectionLine 11a -- During the current tax year, did you transfer property (including cash) to a related foreign trust in exchange for an obligation of the trust or an obligation of a person related to the trust? See instructions: taxpayer checked the checkbox for {Yes}Line 11b -- Were any of the obligations you received (with respect to a transfer described in 11a above) qualified obligations? Taxpayer checked the checkbox for {Yes}The following Roman numerals identify the four columns of examples. The title of the column begins the list. (i) Date of transfer giving rise to obligation: Row 1 -- 2023 Row 2 -- 5-24 Row 3 -- Nov.(ii) Maximum term: Row 1 -- 2 years Row 2 -- 3 years Row 3 -- 4 years.(iii) Yield to maturity: Row 1 -- blank field Row 2 -- blank field Row 3 -- blank field.(iv) FMV of obligation: Row 1 -- 10,000 Row 2 -- 15,000 Row 3 -- 29,000.04 A+ B + C + D + E1 + F1 +G2023.... + H2 YEARS + I + J 10000+K....0524 + L3 YEARS + M +N 15000+O....11.. + P4 YEARS + Q + R 29000+ S + T1 +After CorrectionLine 11a -- During the current tax year, did you transfer property (including cash) to a related foreign trust in exchange for an obligation of the trust or an obligation of a person related to the trust? See instructions: taxpayer checked the checkbox for {Yes}Line 11b -- Were any of the obligations you received (with respect to a transfer described in 11a above) qualified obligations? taxpayer checked the checkbox for {Yes}The following Roman numerals identify the four columns of examples showing corrected data. The title of the column begins the alpha list. (i) Date of Transfer giving rise to obligation: Row 1 -- 2021 Row 2 -- 5-24 Row 3 -- Nov.(ii) Maximum term: Row 1 -- 2 years Row 2 -- 3 years Row 3 -- 4 years.(iii) Yield to maturity: Row 1 -- blank field Row 2 -- blank field Row 3 -- blank field.(iv) FMV of obligation: Row 1 -- 10,000 Row 2 -- 15,000 Row 3 -- 29,000.{6} 04 A+ B + C + D + E1 + F1 +G20230101+ H2 YEARS + I + J 10000+K20230524+ L3 YEARS + M +N 15000+O20231101+ P4 YEARS + Q + R 29000 + S+ T1+

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When the day, month or year is missing and is required, enter the missing data as follows:

The following table contains examples of incomplete dates on Error Register or on IDRS.

Field 03-L is a one - position field that may be present.

See IRM 3.22.19.27.2.3 for correction procedures.

Field 03-M is a 40 - position field that may be present if there is an entry of "1" in Field 03-L.

See for correction procedures.

Field 03-N is a 35 - position field that may be present if there is an entry of "1" in Field 03-L.

Field 03-O is a 22 - position field that may be present if there is an entry of "1" in Field 03-L.

Field 03-P is a two - position field that may be present if there is an entry of "1" in Field 03-L.

Field 03-Q is a 12 - position field that may be present if there is an entry of "1" in Field 03-L.

Field 03-R is a two - position field that may be present.

Field 03-S is a one - position field that must be present if an SSN or ITIN is present in Field 03-T.

Field 03-T is a 9 - position field that must be present if there is an entry of "1" in Field 03-L.

Field 03-U is a 9 - position field that may be present if there is an entry of "1" in Field 03-L.

Valid characters are alpha (a-z), numeric (0-9), ampersand (&), hyphen (-) and blank.

Correct coding and transcription errors. If no entry, leave blank.

Field 03-V is a one - position field that must be present if there is more than one owner present in Field 03-U.

Valid characters are "1" and blank.

Field 04-A is a one - position field that may be present. If Field 04-A contains an entry then Field 04-B, 04-C and 04-D must be completed.

See IRM 3.22.19.8.10 (2) for correction procedures.

Field 04-B is a one - position field that may be present.

See IRM 3.22.19.8.10 (2) for correction procedures.

Field 04-C is a one - position field that may be present.

See IRM 3.22.19.8.10 (2) for correction procedures.

This field is reserved for future use.

Field 04-E is a one - position field that may be present.

Valid characters are "1" , "2" , "3" and blank.

Field 04-F is a one - position field that may be present.

See IRM 3.22.19.10.5 (2) for correction procedures.