Part VII—U.S. Agent, Prior Distributions to U.S. Recipients, and Permissible Distributees

If you are foreign trust that checked “Yes” on Part I, line 13b, to elect to be treated as a domestic trust pursuant to section 2801(e)(4)(B)(iii), you must complete Part VII, Sections 1, 2, and 3.

If you are an electing foreign trust that checked “Yes” on Part I, line 13f, you must complete Section 1 to confirm the

14 Instructions for Form 708 (12-2025)

information regarding the identity or address of your U.S. agent as reflected on your updated Form 2848.

If you are an electing foreign trust or a migrated foreign trust that checked “Yes” on Part I, line 14, you must complete Section 2 to report distributions you made to U.S. recipients attributable to covered gifts or covered bequests in a prior calendar year.

If you are an electing foreign trust, you must complete Section 3 to report all the permissible distributees of the trust.

Section 1—U.S. Agent Complete Section 1 to provide or confirm updated information about your U.S. agent.

As the trustee of an electing foreign trust, you must designate and authorize a U.S. person, as defined in section 7701(a)(30), to act as an agent for the trust solely for purposes of section 2801. This designation and authorization is made on a duly filed Form 2848, Power of Attorney and Declaration of Representative. By designating a U.S. agent, on behalf of the trust you agree to provide the agent with all information necessary to comply with any information request or summons issued by the Secretary of the Treasury or delegate (Secretary) that is relevant to the collection or determination of tax under section 2801. Such information may include, without limitation, copies of the books and records of the trust, financial statements, and appraisals of trust property. In addition, in the event that the Commissioner disputes the value of a covered gift or covered bequest or computation of tax reported on this return, the Commissioner may issue a letter (but not a notice of deficiency as defined in section 6212) to your designated U.S. agent that details the disputed information and the proper amount of section 2801 tax, as it may be recalculated.

Lines 10 and 11

Check the appropriate box to indicate whether you have made the required designation (or updated designation) of your named U.S. agent by filing Form 2848, Power of Attorney and Declaration of Representative. If you check “Yes,” provide the date that the Form 2848 for your designated U.S. agent was filed. If you check “No,” you have not made a valid designation of a U.S. agent.

Section 2—Prior Distributions to U.S. Recipients A foreign trust that is making the domestic trust election and a migrated trust must complete this section.

Line 1

Check this box if you have made no prior distributions to U.S. recipients attributable to covered gifts or covered bequests. If the box is checked, skip line 2.

Line 2

An electing foreign trust must report on this line all distributions made to U.S. recipients attributable to covered gifts or covered bequests made before the initial effective date of the domestic trust election. A migrated trust should report on this line all distributions made to U.S. recipients attributable to covered gifts or covered bequests made before the date that the trust became a domestic trust.

Column (c). Enter the current mailing address of the U.S. recipient. Include the suite, room, or other unit number after the street address. If the post office doesn’t deliver mail to the street address and you have a P.O. box, show the box number instead.

Column (e). Describe the distribution in enough detail so that the property can be easily identified.

Column (f). Enter the value of the property distributed to the U.S. recipient on the date of distribution listed in column (a). For additional information and supplemental documents, see Value of covered gift or covered bequest , earlier.

Column (h). Multiply the value of the property distributed to the U.S. recipient listed in line 1, column (f) by the section 2801 ratio in line 1, column (g). This is the taxable value of the distribution that the U.S. recipient should have reported.

If you are an electing foreign trust, you must complete Section 3 to report all the permissible distributees of the trust.

Section 3—Permissible Distributees An electing foreign trust must identify all permissible distributees. A permissible distributee generally refers to any U.S. citizen or resident who currently may or must receive distributions of income or principal from the trust, any U.S. citizen or resident who currently or in the future may withdraw income or principal from the trust, and any U.S. citizen or resident who would be entitled to receive such distributions or make such withdrawals upon an immediate termination of either the trust or certain interests in the trust. See Regulations section 28.2801-5(d)(3)(ii)(F) for more information.

Column (b). Enter the current mailing address of the permissible distributee. Include the suite, room, or other unit number after the street address. If the post office doesn’t deliver mail to the street address and you have a P.O. box, show the box number instead.