Form 3520

Forum|Forum|2 years ago
February 10, 2024
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I am a US citizen. In year 2023, I received two cash gifts from two foreign family members. Each of them sent me $50k, but each time, the amount showed up in my bank as $49985, and then I got charged another $15 fee for incoming wire. I don't know what happened between the banks because they paid fee before wired the money too. I prepared that I need to file Form 3520, but suddenly I found that I didn't receive more than $100k, but 2 *$49985 in 2023. In Jan 2024, I received another$49985, but I don't expect to receive more in 2024. Based on Form 3520 instruction, I don't think I have to file, but will it better to file? Will there be a problem if I file when I don't need to file?

Not A Product Question

Best answer by DaveF1006

Assuming if the total of the gifts paid by your related foreign persons was $100,000, the IRS says you need to report this on a 3520 only if the amounts of the gifts exceed $100,000.

If the gross amounts from the two gifts exceeded $100,000, then the full amount of the gifts is the amount that will be reported without regard to the wire transfer fee paid.

Form 3520 is an information form. There would be no penalty for filing this if you didn't need to. Since the amounts are right at the threshold for filing a 3520, I recommend filing it for piece of mind.

Foreign Gifts

Instructions for 3520

DaveF1006Answer

Assuming if the total of the gifts paid by your related foreign persons was $100,000, the IRS says you need to report this on a 3520 only if the amounts of the gifts exceed $100,000.

If the gross amounts from the two gifts exceeded $100,000, then the full amount of the gifts is the amount that will be reported without regard to the wire transfer fee paid.

Foreign Gifts

Instructions for 3520

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