Andrew Mitchel LLC

International Tax Blog - New and Interesting International Tax Issues

Fideicomisos/Mexican Land Trusts are Not Trusts (Finally)


As a follow up to our post earlier this year regarding a private letter ruling that concluded that a fideicomiso (or Mexican Land Trust) was not a trust for U.S. tax purposes, today the I.R.S. published Rev. Rul. 2013-14 which concludes the same. Although a taxpayer cannot rely on a private letter ruling, taxpayers can rely on revenue rulings.

This ruling should now allow many taxpayers who have been filing Form 3520 for their Mexican fideicomisos to stop filing them. Hurray!

Now if the I.R.S. will only conclude the same for Canadian tax free savings accounts (“TFSAs”).

Situation 1 in Rev. Rul. 2013-14 can be graphically displayed as:
A PDF file with more details is available here: Rev. Rul. 2013-14 (fideicomiso not a trust).

Tags: Form 3520 / 3520-A, Other - Fideicomiso