Fixed quote after we review your records

Form 3520 and 3520-A Filing Service for Foreign Gifts, Inheritances and Trusts

Money from family abroad, an inheritance from outside the US or an interest in a foreign trust can each bring a US reporting duty, with penalties that grow with the amount involved. We prepare Form 3520 and Form 3520-A from your records and file them. Work is led by Gurleen Kaur, CPA licensed in British Columbia and Washington State.

Gifts and inheritancesForeign trustsCurrent and late yearsWritten scope and fixed fee

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Quick answer

What does a Form 3520 filing service include?

Form 3520 reports certain foreign gifts and bequests and transactions with foreign trusts, and Form 3520-A is the annual return of a foreign trust with a US owner (IRS instructions). A filing service confirms whether you have to file, works out what is reportable from your records, prepares the forms and files them with the IRS by the due date. Form 3520 goes to its own IRS address and has its own due dates. The penalty for an unreported foreign gift is 5% a month, up to 25% of the gift. For foreign trusts, it is generally the greater of US$10,000 or 35%, or 5% in the case of a trust with a US owner.

Prepared by Illuminous Accounting · Sources checked November 1, 2026

At a glance

Gift threshold: More than US$100,000 in the year from a nonresident alien or foreign estate
Form 3520 due: April 15 for most individuals; June 15 if you live and work abroad, with a statement; October 15 if your income tax return is extended
Form 3520-A due: The 15th day of the 3rd month after the trust's year ends; a substitute form goes with your Form 3520
Our fee: A written scope and fixed quote, after we review your records
Source: Form 3520 instructions, checked November 1, 2026

Who needs it

A short version of the rules. For more detail, read our guides to gifts and inheritances and foreign trusts. The facts decide, including who is related to whom and what the trust documents say.

Your situation	What it can mean	Source
You received more than US$100,000 in total from a nonresident alien or foreign estate in the year, such as a gift or inheritance from family abroad	Form 3520, Part IV. Related givers are added together	IRS
You received purported gifts from foreign corporations or partnerships above the yearly threshold: US$20,116 for 2025 and US$20,573 for 2026	Form 3520, Part IV	IRS
You are treated as the owner of any part of a foreign trust	Form 3520 every year, even with no transactions, and the trust's Form 3520-A	Form 3520, Form 3520-A
You received a distribution, loan or free use of property from a foreign trust	Form 3520	IRS
You created a foreign trust or transferred money or property to one	Form 3520	IRS

What we can take on

Each engagement starts with a written scope and a fixed quote. We set the quote after reviewing your records, so you know the fee before work begins.

A gift or inheritance

Form 3520 for one year, including a check of the threshold and of related givers, from your records of what you received. Request a quote

A foreign trust, every year

Form 3520 and Form 3520-A, or a substitute Form 3520-A where the trust does not file, for US owners and beneficiaries who need this done each year. Request a quote

Late years and penalties

Late forms, a reasonable-cause statement, and a plan for which IRS route fits your facts. Responding to a penalty notice is scoped separately. Request a quote

What drives the fee

Gift or trust. A single gift needs less work than a trust with accounts and beneficiaries.
Number of years. Each late year is prepared and supported separately.
Trust records. Statements and a trust deed in English take less work than missing or translated ones.
Distributions. Distributions from a foreign trust can need more analysis.
IRS contact. Responding to a penalty notice is a separate scope.

Canadian plans and accounts

Some tax-favored foreign plans are exempt from this reporting. The instructions point to Rev. Proc. 2014-55 for RRSPs, RRIFs and certain other Canadian retirement plans, and to Rev. Proc. 2020-17 and proposed regulations for certain tax-favored retirement and savings trusts, for people who qualify (IRS).

Rev. Proc. 2020-17 does not name TFSAs or RESPs, so those need a closer look. Exemptions from this reporting do not affect other reporting such as the FBAR. See TFSA, RESP and Canadian funds.

Penalties and why missed years stay open

Foreign gifts. 5% of the gift for each month the failure continues, up to 25%. The IRS may also determine the income tax consequences of the receipt (IRS).
Foreign trusts. Generally the greater of US$10,000 or 35% of the property transferred or distributions received, or the greater of US$10,000 or 5% of the trust assets treated as owned by a US person where Form 3520-A is missing (26 U.S.C. 6677).
After a notice. Further penalties apply if the failure continues more than 90 days after the IRS mails a notice. They are reduced so that the total does not exceed the gross reportable amount, if the IRS can determine it (IRS).
The time limit. If a complete Form 3520 is not filed on time, the IRS time limit to assess tax on the related events does not run out until 3 years after the information is reported (IRS).
Reasonable cause. No penalty applies if the failure was due to reasonable cause and not willful neglect. The instructions say that a foreign country's penalties for disclosure, or a reluctant foreign trustee, are not reasonable cause.

Behind on Form 3520?

Your situation	Route to look at	What it means
All income was reported and only these forms were missed; the IRS has not contacted you	Delinquent international information return procedures	Late forms sent as the form instructions direct, with a reasonable-cause statement. The IRS says it considers the statement for these forms before assessing a penalty
Income was also left off, or returns were missed, and the failure was not willful	Streamlined procedures; see IRS Streamlined filing	Returns, FBARs and information returns for the covered years, with a certification of non-willful conduct
You are not sure, or you already received an IRS letter	Our catch-up guide	Choose the route before filing anything, because what you file first can affect what remains open to you

We do not promise any outcome; the IRS decides penalties.

How it works

Send your request. Tell us what you received or which trust is involved, and which years are open, using the form below.
Review and fixed quote. We review your records and give you a written scope and fee.
Preparation and review. We prepare the forms and go through them with you.
Filing. The forms go to the IRS by the due date, and we keep your file for any later years.

What we need from you

For a gift or inheritance: who gave it, how they are related to you, dates and amounts
Bank records showing what you received
Estate documents, if it was an inheritance
For a trust: the trust deed, trust statements and trustee details
Your US returns and any earlier Forms 3520 or 3520-A
Any IRS letters

Please do not send tax IDs or statements through the website form. If we work together, documents come in through our secure client portal.

Common questions

How much does a Form 3520 filing cost?

We give a written scope and fixed quote after reviewing your records. The fee depends on whether it is a gift or a trust, the number of years, the state of the records and whether the IRS has already been in touch.

My parents abroad sent me money. Do I file Form 3520?

If the total from nonresident aliens or foreign estates in the year is more than US$100,000, generally yes. Gifts from people you know are related are added together for the test.

Is Form 3520 filed with my tax return?

No. It goes to its own IRS address and has its own due dates. For a calendar-year individual, the regular due date is generally the same day as the income tax return.

When is Form 3520 due if I live in Canada?

If you live and have your place of business outside the US, the due date is extended to June 15, with a statement attached. If your income tax return is on extension, Form 3520 is due no later than October 15.

What happens if a foreign trust does not file Form 3520-A?

The US owner must complete a substitute Form 3520-A and attach it to Form 3520 by the due date of Form 3520 to avoid being subject to the penalty for the trust's failure.

Do RRSPs, TFSAs and RESPs need Form 3520?

RRSPs and RRIFs are covered by an exemption in Rev. Proc. 2014-55. Rev. Proc. 2020-17 covers certain tax-favored trusts for people who qualify, but it does not name TFSAs or RESPs, so those need a closer look.

I received a gift years ago and did not report it. What now?

If the IRS has not contacted you, late forms can go in with a reasonable-cause statement, and the IRS says it considers that statement for these forms before assessing a penalty. If income or returns were also missed, compare the Streamlined procedures first.

Sources

Every rule and figure on this page links to the IRS, CRA or other official source it comes from. Amounts change; we re-check them before each engagement.

Gurleen Kaur, CPA licensed in British Columbia and Washington State. Last updated November 1, 2026. This page is general information, not tax or legal advice for your situation.

Request a quote for your Form 3520

Tell us your situation in a few lines. We confirm whether we can help, what records matter and the next step. Substantive advice begins under a paid diagnostic or signed engagement.

Prepared and signed by a licensed US CPA who can represent you before the IRS. Verify Gurleen Kaur's Washington licence (#41150) on CPAverify

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