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Ice888
October 2, 2024
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NRA receive money from abroad, tax filing question

  • October 2, 2024
  • 2 replies
  • 0 views

My family member is a non resident alien, a foreigner who doesn’t live in US but has a bank and brokerage account in US for investment. He received wire transfer over 100k from a family member in the home country within a year, does he need to report this on FORM 3520 as gift like US person ? 

A more general question is that if NRA needs to report at all to the IRS the money from abroad that are sent by the third party a family or a friend(not the NRA himself)? This money is not US sourced income.

 

Best answer by pk12_2

@Ice888  money transfers  between NRAs, even if  into accounts owned and operated by NRA does not come under the aegis of US tax laws.  However, the US sourced income ( i.e. growth of the investment  ) is taxable  income to the NRA  ( assuming the person does have a Tax ID ).  The transfer  into an US account  ( whether owned by a US person ( citizen/GreenCard/ Resident for Tax Purposes ) will result in  SAR ( Suspicious Activity Report ) as a matter of course.

 

There is no  3520 or Gift Tax form required.

 

Is there more I can do for you ?

2 replies

A
Anonymous_
Employee
October 2, 2024
No text available
P
pk12_2Answer
Employee
October 2, 2024

@Ice888  money transfers  between NRAs, even if  into accounts owned and operated by NRA does not come under the aegis of US tax laws.  However, the US sourced income ( i.e. growth of the investment  ) is taxable  income to the NRA  ( assuming the person does have a Tax ID ).  The transfer  into an US account  ( whether owned by a US person ( citizen/GreenCard/ Resident for Tax Purposes ) will result in  SAR ( Suspicious Activity Report ) as a matter of course.

 

There is no  3520 or Gift Tax form required.

 

Is there more I can do for you ?

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