Segal, Cohen & Landis, P.C.
Foreign Gifts and Inheritances — IRS Reporting Compliance
IRS tax attorneys — Beverly Hills, CA. National representation.
A U.S. person generally reports gifts or bequests totaling more than $100,000 during a tax year from a nonresident alien individual or foreign estate on Form 3520. Gifts from related donors must be aggregated where required. Purported gifts from foreign corporations or partnerships have a separate, annually adjusted threshold; check the IRS amount for the year received. Gifts and inheritances are generally excluded from income, but exceptions and separate reporting obligations can apply, including rules for covered expatriates and foreign trusts.
How We Help
Our Approach to Foreign Gift and Inheritance Tax Attorney
Form 3520 Filing
We prepare and file Form 3520 for all qualifying foreign gifts and inheritances, ensuring accurate characterization and all required disclosures.
Penalty Abatement
If Form 3520 penalties have been assessed for prior-year foreign gifts or inheritances, we prepare comprehensive penalty abatement requests arguing reasonable cause.
Inherited Foreign Account Compliance
Foreign inheritances often include bank accounts or brokerage accounts that must be reported on the FBAR, Form 8938, and potentially Form 3520. We assess all inherited foreign assets and handle all required disclosures.
Gift Documentation and Characterization
Proper documentation of a foreign gift — establishing it as a gift rather than unreported income or a loan — is critical. We advise on what documentation is needed and assist in obtaining it.
How It Works
The Resolution Process
Transaction Analysis
We review the gift or inheritance and identify all applicable US reporting obligations.
Form 3520 Preparation
We prepare Form 3520 with complete, accurate information and supporting documentation.
Penalty Defense (if applicable)
For prior-year unreported gifts, we file the delinquent Form 3520 and simultaneously request penalty abatement based on reasonable cause.
Foreign Asset Compliance
If the inheritance includes foreign accounts, we ensure all FBAR, Form 8938, and other applicable reporting is current.
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Our attorneys have helped thousands of clients resolve IRS matters. Your consultation is free and confidential.
Common Questions
Frequently Asked Questions
Is a foreign inheritance taxable in the US?+
A U.S. person generally reports gifts or bequests totaling more than $100,000 during a tax year from a nonresident alien individual or foreign estate on Form 3520. Gifts from related donors must be aggregated where required. Purported gifts from foreign corporations or partnerships have a separate, annually adjusted threshold; check the IRS amount for the year received. Gifts and inheritances are generally excluded from income, but exceptions and separate reporting obligations can apply, including rules for covered expatriates and foreign trusts.
What if my foreign parents send me money regularly?+
A U.S. person generally reports gifts or bequests totaling more than $100,000 during a tax year from a nonresident alien individual or foreign estate on Form 3520. Gifts from related donors must be aggregated where required. Purported gifts from foreign corporations or partnerships have a separate, annually adjusted threshold; check the IRS amount for the year received. Gifts and inheritances are generally excluded from income, but exceptions and separate reporting obligations can apply, including rules for covered expatriates and foreign trusts.
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Beverly Hills · Los Angeles · National
Segal, Cohen & Landis, P.C.
9100 Wilshire Boulevard, 601 East Tower, Beverly Hills, CA 90212
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