Do I Need to File Form 3520?

Answer a few questions to find out whether the IRS requires you to file Form 3520 — and what happens next. Takes about 60 seconds.

This tool is for general informational purposes only and does not constitute legal or tax advice. Your specific situation may involve additional facts that affect your obligations. Consult a qualified tax attorney for advice specific to your case.

Question 1 of 5

Are you a U.S. person for tax purposes? (U.S. citizen, green card holder, or someone who meets the substantial presence test)

If you’re a foreign national with no U.S. tax obligations, Form 3520 generally does not apply to you.

Did you receive money or property from a foreign person (non-U.S. citizen/resident) this tax year?

This includes wire transfers, property transfers, or inherited assets from parents, relatives, or anyone outside the U.S.

Did gifts or bequests from one nonresident foreign individual or foreign estate, including related donors where required, total more than $100,000 during the year?

Add multiple gifts from the same donor and include related donors as required. Do not automatically combine unrelated donors. Trust transactions and entity gifts follow separate rules.

Did any of the gifts or transfers come from a foreign corporation or foreign partnership (rather than a foreign individual)?

Purported gifts from foreign entities have a separate threshold adjusted annually. Check the IRS amount for the tax year in which you received the gift.

Do you have any connection to a foreign trust? (Ownership interest, received distributions, or made transfers to a foreign trust)

✓ Form 3520 Likely Does Not Apply

If you are not a U.S. person for tax purposes, you generally have no obligation to file Form 3520 as a recipient of foreign gifts.

However, if you have any U.S. tax connection — such as owning U.S. property, having U.S.-source income, or a spouse who is a U.S. person — you should consult an attorney to confirm your obligations.

Questions? Call 310-285-3999
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⚠ Form 3520 Filing Required

Based on your answers, you are likely required to file Form 3520 to report gifts received from foreign individuals.

  • Threshold: Reportable gifts or bequests from a donor, including related donors where required, exceeded $100,000 in the year.
  • Deadline: Same as your income tax return (April 15, extended to October 15 if you file for an extension).
  • Penalty for missing: 5% of the gift value per month, up to 25% — potentially tens of thousands of dollars even if you owed zero income tax.
  • Filed late in prior years? Late filings may still be possible with reduced or no penalties using the right IRS procedure.

Our attorneys help clients file Form 3520 correctly and defend against penalties for missed filings.

Learn More About Form 3520 →    Call 310-285-3999
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⚠ Form 3520 Filing May Be Required

Purported gifts from foreign corporations or partnerships have a separate, annually adjusted reporting threshold. Use the IRS threshold for the year received and the applicable aggregation rules.

  • If the total transfers from foreign entities exceeded this threshold, Form 3520 is required.
  • These transfers are reported in Part IV of Form 3520, separate from individual gift reporting.
  • Foreign-gift penalties generally fall under IRC §6039F: 5% per month, up to 25%, subject to reasonable-cause relief. Foreign trusts have different penalty rules.

Given the lower threshold, we recommend confirming your obligations with a tax attorney even if the amount seems small.

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⚠ Foreign Trust Reporting Needs Individual Review

Foreign trust reporting triggers some of the most complex and penalty-heavy filing obligations in U.S. tax law.

  • Form 3520: Reportable transfers, distributions or ownership may require filing. Exemptions can apply.
  • Form 3520-A: A U.S. owner generally must ensure the foreign trust meets its annual reporting duties; exceptions and substitute-return procedures may apply.
  • Penalty for missing: Initial trust penalties generally equal the greater of $10,000 or 35% of an unreported transfer or distribution; certain ownership-reporting failures use 5% of relevant trust assets. Statutory limits, additional penalties and relief may apply.

Foreign trust situations are highly fact-specific and require experienced legal guidance. Do not attempt to navigate this alone.

Foreign Trust Reporting Guide →    Call 310-285-3999 Now
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✓ Form 3520 Likely Not Required This Year

Based on your answers, you likely do not have a Form 3520 filing obligation for the current tax year.

However, there are some situations this checker may not have captured:

  • You received gifts from a foreign person under the $100,000 threshold but expect to exceed it next year
  • You have ownership in a foreign entity (corporation, partnership, or LLC) structured outside the U.S.
  • You are beneficiary of a foreign estate or trust even if no distributions were made

If any of these apply, a brief consultation can confirm your position and help you plan for the future.

Free Consultation: 310-285-3999
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