A Comprehensive Guide to Form 3520: Foreign Trust and Receipt of Foreign Gift Return

🔍Form 3520 is used to report gifts received by US persons from foreign persons.

📝Filing requirements are triggered if the US person receives gifts of more than $100,000 from non-resident aliens or foreign estates.

💼Gifts from US persons are reported on Form 709, while gifts from foreign persons are reported on Form 3520.

💸Failure to file Form 3520 can result in penalties and potential reclassification of the gifts.

📅The due date for filing Form 3520 is the 15th day of the fourth month following the close of the taxpayer's year.

What is Form 3520?

—Form 3520 is a required filing for US citizens who receive gifts from foreign persons.

When is Form 3520 required?

—Form 3520 is required when a US person receives gifts of more than $100,000 from non-resident aliens or foreign estates.

What is the penalty for not filing Form 3520?

—Failure to file Form 3520 can result in a 5% penalty on the value of the gift, up to 25%. The IRS may also reclassify the gift.

Are gifts from US persons also reported on Form 3520?

—No, gifts from US persons are reported on Form 709.

What is the due date for filing Form 3520?

—The due date for filing Form 3520 is the 15th day of the fourth month following the close of the taxpayer's year.

00:00Video introduces Form 3520 and its purpose.

02:36Explanation of the filing requirements and triggers for filing Form 3520.

05:12Difference between gifts from US persons and gifts from foreign persons.

07:46Penalties for failure to file Form 3520.

09:56Due date and other important information for filing Form 3520.