IRS Form 3520 and foreign inheritances and gifts

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Form 3520 is officially the 'Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts'.
There are four sections to the form:
Part I -Transfers by U.S. Persons to a Foreign Trust During the Current Tax Year
Part II-U.S. Owner of a Foreign Trust
Part III-Distributions to a U.S. Person From a Foreign Trust During the Current Tax Year
Part IV-U.S. Recipients of Gifts or Bequests Received During the Current Tax Year From Foreign Persons
In this video we focus on Part IV which affects US persons who, during the current tax year, received:
More than $100,000 from a nonresident alien individual or a foreign estate (including foreign persons related to that nonresident alien individual or foreign estate) that you treated as gifts or bequests; or
More than $15,601 from foreign corporations or foreign partnerships (including foreign persons related to such foreign corporations or foreign partnerships) that you treated as gifts.
Form 3520 is just that -- a reporting requirement -- not a tax. The IRS doesn't want your money (yet), but would like to know exactly where your money is! Some people incorrectly assume that if no tax is due on their inheritance, then they don't have to file Form 3520.
Form 3520 is due on the date your income tax return is due (including extensions), and a separate form must be filled out for transactions with each foreign trust.
The Penalties:
If not filed, or if the information is incomplete or incorrect. The initial penalty:
Equal to the greater of $10,000
or 35% of the gross value of any property transferred to a foreign trust for failure by a U.S. transferor to report the creation of or transfer to a foreign trust
or 35% of the gross value of the distributions received from a foreign trust for failure by a U.S. person to report receipt of the distribution
or 5% of the gross value of the portion of the trust's assets treated as owned by a U.S. person for failure by the U.S. person to report the U.S. owner information
Additional penalties will be imposed if the noncompliance continues after the IRS mails a notice of failure to comply with the required reporting.
No penalties will be imposed if the taxpayer can demonstrate that the failure to comply was due to reasonable cause and not willful neglect.
The time for assessment of any tax imposed with respect to any event or period to which the information required to be reported in Parts I through III of such Form 3520 relates, will not expire before the date that is 3 years after the date on which the required information is reported.

[@62grantgilmore]

I wish these jokers would just get to stating the facts & not waste time.

[@garywarner4714]

Too many jokes. I just want information

[@usaosakan]

for my foreign inheritance, I only described "Cash" in description of property received in (b) 54 Part4. should I send an amendment to add more details such as "Foreign inheritance from my foreign parent " and my bank account info? I am very concerned now I might have screwed up my form... there was no space in FATCA to describe my bank info since I already submitted F3520. F8938 instructions said if I submitted F3520, I don't have to disclose my bank info. I submitted FBAR as well, by the way. but the amount that I submitted in FBAR was not very accurate since I transferred an amount form checking to saving, and I reported the biggest amounts of the year of each account. so, my FBAR double counted the amount I transferred.

[@irsmedic]

This is the terror of uncertainty. The IRS intentionally avoids giving clear answers as they want to protect their penalty generating machine.

[@usaosakan]

@@irsmedic I decided not to bother. Before I submitted the form by myself, I called IRS for several times. None of the agents on the phone answered any of my questions regard to this form. After I commented here, I had a CPA for a paid one hour consultation. He told me describing just 'Cash' should be fine, and the most important thing was to submit on time. My form has been accepted. I hope it's just being buried at IRS forever.

[@User-s4s2b]

@@usaosakan Thank you for your information. I just wrote "Cash" like you did. How did you know that your form has been accepted? Did you receive any notification from IRS? I didn't get any from IRS but I have USPS' Return receipt.

[@bennybodash855]

Everything is a “Government Obligation” therefore you never owe or are liable for any taxes. The government holds Legal Title to every piece of property through the “Usufructuary Rights”. It’s all in the Code of Federal Regulations and Public and Private International Law. Go to Supremelaw.org read and research the free info Paul Mitchell (he’s a lawyer that removed himself from jurisdiction of the IRS) back in the 90’s. They are able to presume you are someone you aren’t until you correct the record with the proper paperwork. See a document called “31 Questions and Answers For The IRS”. It’s an affidavit prepared by Paul himself and you can obtain a certified copy for a small fee. I think it’s $15. Research, read and keep going and don’t stop. They don’t want you to have your freedom!

[@darriusmarqiusbey8463]

How can i get my refund from an old crimal case they've made commercial

[@gautamkhanna5842]

Fbar - why would one get into a disclosure program ? Everyone starts somewhere and starts to file from the year they learn about it and thereafter get into the system.

[@albertmartinez4455]

There is nothing more frustrating than hear people that "think" they are funny but they are discussing important issues...

[@irsmedic]

This video has 3520 reporting updates kzbin.infokWZOa4vVOoE

[@redskytitan]

So should this form be filed and mailed along with form 1040, or is it mailed separately? The instructions seem to indicate the form should be sent to an address in Utah. Very confusing!

[@johnportoriano1628]

Do you have to attach any documents to form 3520? Thank you for your answers.

[@irsmedic]

We never have.

[@stephanecalvinrosenberg5706]

Is there a reporting requirement if the gift doesn't meet the threshold ie under 100k?

[@irsmedic]

No.

[@JonathanEleini]

I live in the US and I am a US Citizen. My parents in a foreign country (Non US Citizens) recently passed away. I was given $6000 (six thousand) as my inheritance. Do I need to file Form 3520?

[@irsmedic]

The answer is no. Only foreign gifts and inheritance wroth over $100k USD need to be reported on Form 3520 I am sorry for your loss.

[@JonathanEleini]

@@irsmedic Wow, I am just happy someone commented and gave me a straight answer. I appreciate that very much. Thank you.

[@gautamkhanna5842]

So foreign inheritance unlimited amount has absolutely no taxes just reporting obligations? How will they even know if one has a foreign inheritance?

[@gautamkhanna5842]

Is FATCA 8938 still required if one is not required to file income taxes ?

[@artmanjamin]

what if i received inheritance money from overseas around $150k but that money is to be divided into 4 people, do I need to report? Basically it's using my bank account to receive money. Thanks in advance.

[@Geneattenborough]

I had absolutely no idea about this to 4 months ago...I'm beside myself..of course i want to right the wrong but how?

[@MrDante40]

Social Security Administration claims to be the beneficiary and trustee. How can a person stop them from claimimg to be the beneficiary and make tell honor their trustee duties.

[@1000VC]

Dante James sf 30