Instructions for IRS Form 3520 Annual Return to Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts

IRS Form 3520 Annual Return to Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts

This document contains official instructions for IRS Form 3520 , Annual Return to Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts - a tax form released and collected by the Internal Revenue Service (IRS), a subdivision of the U.S. Department of the Treasury. An up-to-date fillable IRS Form 3520 is available for download through this link.

FAQ

Q: What is IRS Form 3520?
A: IRS Form 3520 is an annual return used to report transactions with foreign trusts and the receipt of certain foreign gifts.

Q: Who needs to file IRS Form 3520?
A: US residents or citizens who have received gifts or inheritances from foreign sources, as well as anyone who is a grantor, transferor, or beneficiary of a foreign trust.

Q: What transactions need to be reported on IRS Form 3520?
A: Transactions with foreign trusts, including contributions, distributions, acquisitions, and dispositions, as well as foreign gifts with a value exceeding certain thresholds.

Q: What are the penalties for noncompliance with IRS Form 3520?
A: Penalties can range from $10,000 or 35% of the amount of the transaction, whichever is greater, to criminal penalties in certain cases.

Q: When is the deadline for filing IRS Form 3520?
A: The deadline for filing IRS Form 3520 is generally the same as the taxpayer's income tax return deadline, including extensions.