Fed form 3520 - is it supported by lacerte?

[vicky]

I was wondering about that as well.

[Kathi_at_Intuit]

Thank you for stopping by the community today. This form is not supported. In screen 45.3 there is input for this form and the F1 help says:

Tax on Transactions with Foreign Trusts and Receipts of Foreign Gifts (3520)
Other Taxes Screen 45; Code 115

Form 3520 “Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts” is not supported in the Lacerte Individual Income Tax program. Refer to Form 3520 instructions for the purpose of the form and who must file instructions. If the taxpayer needs to file Form 3520, it must be manually prepared, and the additional tax should be entered in this field. The amount entered is reported on the Taxes line of Schedule 2 labeled with a code of “ADT” in accordance with Form 3520 instructions.

[Kenneth1]

I have 2 clients who need form 3520 attached to the return. Has this been remedied and is it available on Lacerte in 2022?

[itonewbie]

There is nothing to remedy.

F.3520 does not need to be attached to an income tax return.  Neither does F.3520 require the attachment of an income tax return.

F.3520 is to be filed separately and I'm assuming you already have a F.3520-A.

[itonewbie]

@Kenneth1 Presumably, your client would check the box on Sch B for foreign trust; the IRS will then expect F.3520 to be filed separately.

[Kenneth1]

I need to prepare the form 3520 based on client information- yes, I am expecting Lacerte to provide me the means to prepare this form, as they do all forms. This is a form that needs to be prepared to submit with the 1040.

[itonewbie]

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@Kenneth1 wrote:

This is a form that needs to be prepared to submit with the 1040.

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@Kenneth1 Like I said, F.3520 is not to be filed with F.1040.  You may like to read the instructions for both F.1040 and F.3520 again.

Lacerte does not prepare all forms.  There are different modules and Lacerte has most of the typical forms and schedules that need to be filed with each particular type of return.

We specialize in international tax and would love to have more international forms supported.  When it comes to international returns, Lacerte/ProConnect Tax do ok compared to other similarly-priced products but are not stellar compared to the higher-end software (think F.8621 and GILTI).  Until those core functionalities are improved, I wouldn't expect much by way of support for forms such as F.3520 which are not technically part of an income tax return.

In the meantime, you may like to use other ah-hoc products.  Since F.3520 is relatively straightfoward and the crux of the work is really in data gathering, products like IntelliForms will do just fine (if you don't want to do basic form-fill with PDF files downloaded from the IRS' website).