@Yangza , should one assume that you and your spouse are both US persons ( Citizen / Green Card / Resident for tax purposes ) ? Additionally should we assume that your parents ( donors) are US persons (or foreign i.e. Non-Resident Aliens?)?
If I assume both to be true i.e. you/spouse are both US persons and the donors are foreign persons, then
(a) for a gift of that size -- above US$ 100,000-- form a foreign person you must use form 3520 to recognize the gift. It has no effect on your taxes or those of the donor(s). This is only for the year in which you constructively received the amount.
(b) If any amount above US#10,000 rests in your foreign bank account you would need to recognize this on FinCen form 114 by the return filing date -- again this has no tax implications. You have to continue doing this as long as a foreign bank account/ financial account at any time in the year has more than US$10,000 or equivalent -- no tax implications but if not reported the penalties are quite onerous. Each person whom owns or has signature authority over a foreign bank account is subject to FBAR ( form 114, FinCen ) requirements.
(c) form 8938 -- FATCA , may also need to be filed and again this has nil tax implications but not filing penalty is onerous.
(d) note that both these forms ( Fincen 114 and 8938 ) are individual ownership related not per joint filing.
(d) When you choose to transfer these amounts from a foreign account to US bank account there will be SAR ( Suspicious Activity Report ) raise by your bank to treasury but generally this is just routine paperwork. However if you do move a million or more , if I remember correctly , you will need treasury permission.
(e) also please note that any amounts sitting in foreign bank or otherwise that generates income ( interest / dividend etc. ), you need to recognize these amounts as income on your return for the year .
Does this answer your query? Is there more I can do for you ?
Xie Xie
pk
