Par. 9. Sections 1.6048-1 through 1.6048-7 are added to read as follows:
(a) Special rules —(1) Dual resident taxpayers. If a dual resident taxpayer (within the meaning of § 301.7701(b)-7(a)(1) of this chapter) computes U.S. income tax liability as a nonresident alien on the last day of the taxable year and complies with the filing requirements of § 301.7701(b)-7(b) and (c) of this chapter, the dual resident taxpayer is not treated as a U.S. person for purposes of section 6048 with respect to the portion of the taxable year the dual resident taxpayer is treated as a nonresident alien for purposes of computing U.S. income tax liability.
(2) Dual status taxpayers. If a taxpayer abandons U.S. citizenship or residence during the taxable year or acquires U.S. citizenship or residence during the taxable year as provided in § 1.6012-1(b)(2)(ii), the taxpayer will is not treated as a U.S. person for purposes of §§ 1.6048-1 through 1.6048-7 with respect to the portion of the taxable year the taxpayer was treated as a nonresident alien for purposes of computing U.S. income tax liability.
(b) Effect of ownership under the grantor trust rules. The fact that a portion of a foreign trust is treated as owned by the grantor or another person under subpart E of part I of subchapter J of chapter 1 of the Internal Revenue Code is irrelevant for purposes of determining whether a U.S. person makes a transfer to, or receives a distribution from, a foreign trust that must be reported under §§ 1.6048-2 through 1.6048-4. See § 1.6048-4(g)(13) and (14).
(c) [Reserved]
(d) Married U.S. persons filing a joint income tax return. Married U.S. persons who file a joint income tax return under section 6013 for a tax year, and each of whom is subject to the information reporting requirements under §§ 1.6048-2(a) (as a grantor or transferor under §§ 1.6048-2(c)(1) and (2) required to file Part I of Form 3520), 1.6048-3(a)(2) (as a U.S. owner of a foreign trust required to file a substitute Form 3520-A), or 1.6048-4(a) (as a U.S. recipient of a distribution from a foreign trust required to file Part III of Form 3520) for the same foreign trust, may together file a single Form 3520, Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts, for that year at the time and in the manner described in §§ 1.6048-2 through 1.6048-6. For purposes of filing a substitute Form 3520-A under § 1.6048-3(a)(2), a separate Foreign Grantor Trust Owner statement must be completed and attached for each married U.S. person. See § 1.6677-1(f) with respect to liability for penalties.