Hi. I have a SIPP with AJ Bell in the UK that I set up in 2024 by merging 3 old PPP's from other providers. I have not made any withdrawals and don't plan to for some time. I declare it alongside my other UK assets on my 8938 and my FBAR. In recent days I have read conflicting advice about whether I should also be filing a 3520. The 3520 is a complicated form and the penalties for non filing are heavy. I had never heard of it until now. If you go on an accountancy website they say you need to (presumably they want the fees!) but elsewhere the consensus seems to be as long as it is declared on the 8938 and the FBAR you're ok. Has anybody else got ant experience / thoughts on the matter? Thanks!

We have not filed a 3520 for our SIPPS all the years we have lived here.
3520 is for Trusts, is it not ? which a SIPPS is not.

I don't think there is a full consensus. The argument is that Rev. Proc. 2020-17 (https://www.irs.gov/pub/irs-drop/rp-20-17.pdf) exempts SIPPs from this requirement, but it's not absolute because the contribution limits are not sufficient.
The safest is to fill it out, but I'm sure there are thousands of people who don't. A $10k fine is technically possible per form plus I think 5% of the value.

https://www.taxesforexpats.com/artic...f-requirements

Arguably it is. The IRS may classify a SIPP as a Foreign Grantor Trust

Thanks. It seems the consensus is that there is no consensus!

There is zero evidence of anyone ever being penalized for not filing a 3520 for a SIPP. If it was an issue it would be well publicized by both the IRS and those international tax preparers that love to scare people to death in order to generate income.

I'm sure that's right. To also be fair to them, as a professional in the field you would want to a) err on the side of caution and b) follow a strict plain-text reading of the rules.
The spirit of Rev. Proc. 2020-17 appears to be to try to exempt SIPPs and similar from such onerous filing, but unfortunately the way it's written it doesn't strictly. And as typical, the IRS are not forthcoming with clarifications.

Personally I decided at the last minute not to roll my employer pension plan into a SIPP for exactly this reason and just to be safe. In any event the fees and investment options were fine for me so it wasn't worth the risk.
Only the individual can decide their own risk tolerance.

Hi Everyone, Like most of us I have found the transition from the UK Tax system to the USA one complicated and stressful. One particular area of stress is the reporting of my UK SIPP on the 3520/A form which I have filed since moving to the USA. As there is much confusion out there several of us have formed a FaceBook group and are currently writing to the IRS and the US Dept of Treasury requesting clarity on where the UK SIPP sits in the need or not to file 3520/A . The 2020 Revenue Procedure did provide some clarity but for people like me who consolidated 40 years of retirement savings into a SIPP it did not give me certainty I could stop reporting, The forms are complicated and with the $10,000 / 5% of of the value fines it it adds stress and allows tax filers a nice revenue stream.
The IRS put out a consultation document to address the area but again it had limitations and tihnk over 1300 people provided feedback tot heir draft but there has been radio silence since. If you want to join the group we are at UK_US Expats Sipp and tax reporting and here are the details of the group

About

This group is for UK and US expats navigating cross-border pension and tax reporting issues, particularly relating to UK Self-Invested Personal Pensions (SIPPs).
Many expats have discovered that the IRS may treat a SIPP as a foreign trust, which can trigger complex reporting requirements such as:
• IRS Form 3520
• IRS Form 3520-A
These forms can be expensive and confusing to file, and there is currently no clear IRS guidance specifically addressing SIPPs.
As a result, expats often receive conflicting advice:
• Some accountants say the forms are required
• Others say SIPPs are closer to retirement plans like a 401(k) retirement plan or Individual Retirement Account (IRA) and should not require these filings.
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� Goals of this group
• Share experiences and reliable information
• Help expats understand cross-border pension reporting
• Discuss how SIPPs are being treated by accountants and the IRS
• Raise awareness of the issue among affected expats
And importantly:
• Encourage the IRS to provide clear guidance on whether SIPPs require Forms 3520 and 3520-A.
Many expats face significant compliance costs because of this uncertainty, so greater clarity would benefit both taxpayers and tax professionals.
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A few quick notes
• This group is not a substitute for professional tax advice.
• Experiences shared here may differ depending on individual circumstances.
• Please keep discussions respectful and factual.
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If you are a UK or US expat with a SIPP, feel free to introduce yourself and share your experience.
You’re probably not the only one facing the same questions.
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