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Foreign gifts and inheritances: Form 3520
Receiving money or property from a foreign person can create a US information-reporting question even when the amount is not US taxable income. Form 3520 applies only in defined situations; classification of the transferor, amount, trust involvement and prior reporting matters.
Who it may apply to
US persons receiving gifts or bequests from nonresident alien individuals, foreign estates, foreign corporations or foreign partnerships, or receiving distributions connected with a foreign trust.
Records to collect
Gift or inheritance documents, donor identity and residence, bank-transfer trail, property valuation, foreign estate papers, trust documents, prior Forms 3520 and related income or account reporting.
Filing and decision points
Identify whether the transfer is a gift, inheritance, entity transfer or trust distribution; test the IRS reporting thresholds and due date; and determine whether a separate foreign-trust analysis is needed.
Common mistakes
Calling every transfer a gift, using a family label instead of source documentation, omitting noncash property, or missing a trust’s role in the payment path.
Official sources
- IRS Instructions for Form 3520
- IRS foreign trust reporting overview
- Related guide: foreign trusts and Form 3520-A
Reviewed by Gurleen Kaur, CPA (Washington State). Reviewed September 7, 2026.