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Foreign Pension & Form 3520 Foreign Pension & Form 3520 Filing Requirements Foreign Pension & Form 3520: When a person has an ownership in a foreign trust, or receives a foreign trust distribution, they may have an IRS Form 3520 reporting requirement — in addition to Form 3520-A. But, are foreign pensions considered to be a foreign trust that is reportable on Form 3520? It depends. The IRS does not identify each specific foreign pension…
Automatic Assessment of Form 3520 Penalties Automatic Assessment of Form 3520 Penalties Automatic Assessment of Form 3520 Penalties: When a U.S. Person is out-of-compliance with the IRS for non-compliance with foreign gift, inheritance or trust reporting rules, they may become subject to offshore penalties. U.S. Persons with certain foreign transactions with gifts and trusts are required to file IRS Form 3520. The Form is also referred to as “Annual Return To Report Transactions With…
Form 3520 & No Tax Return Form 3520 & No Tax Return Form 3520 & No Tax Return: A common misconception that many taxpayers (understandably) have, is that if a person is not required to file a tax return, then they are not required to file a form 3520 with the IRS – but that is incorrect. In fact, nearly all international information reporting forms are required to be filed by taxpayers in any year…
Gift From Foreign Person Gift From Foreign Person Reporting Gift From Foreign Person: When U.S. Persons receive gifts from foreign persons, the IRS may want to know about it. Not all gifts have to be reported. Rather, if the U.S. Person receives a gift that exceeds the threshold for reporting, only then must the gift be reported. The threshold requirements for reporting vary based on whether the gift is received from a Foreign Individual or…
Delinquent International Form 3520 Information Return Submission Procedures Delinquent International Form 3520 Information Returns Delinquent International Form 3520 Information Return Submission: The IRS Delinquency Procedures are used as an alternative to the Streamlined Procedure and Voluntary Disclosure Program. Technically referred to as DIIRSP or Delinquent International Information Return Submission Procedures, the offshore reporting program is popular for Form 3520 submissions. That is because when the Form 3520 refers to gifts, oftentimes there is no income…
IRS Tax Form 3520 and Foreign Gift Reporting IRS Tax Form 3520 and Foreign Gift Reporting Tax Form 3520 and Foreign Gift Reporting: Not all IRS forms are used to for tax purposes. Rather, some of the international reporting forms required by the Internal Revenue Service are for “reporting,” and not tax. One common example is IRS form 3520. The Form 3520 is referred to as the Annual Return To Report Transactions With Foreign Trusts…
Differences Between Form 3520 & 3520-A Form 3520 vs Form 3520-A What is the Difference Between 3520 & 3520-A?: One very common question we receive, is: “What is the Difference Between Form 3520 and 3520-A?” Both forms involve Foreign Trust Reporting. But Form 3520 also includes Foreign Gift reporting as well. In addition, the due dates for filing the form are different — so are the methods and timing for filing the form, and/or…
Penalty Relief and Exemptions for Form 3520 Form 3520 Penalty Relief & Exemptions  Penalty Relief & Exemptions Under New Form 3520 Guidelines: The Form 3520 penalties can be severe. When a person receives a gift from a foreign person, the penalty can be upwards of 25% value of the gift. So for example, if a person receives a $600,000 gift or inheritance from a Foreign Person, the general IRS penalty for that amount would be…
Form 3520 Voluntary Disclosure Form 3520 Voluntary Disclosure Form 3520 Voluntary Disclosure: While technically, there is no specific voluntary disclosure program exclusively for form 3520, the IRS 3520 Form is often a common part of a voluntary disclosure submission. Whether it is because a U.S. Person received a gift from a foreign person, an inheritance from a foreign person, or has ownership over a foreign trust (or received a distribution from a foreign trust) –…
Who Should File Form 3520? Who Should File Form 3520 with the IRS? Who Should File Form 3520? The IRS Form 3520 is used to report certain foreign transactions to the IRS. The Form is generally required when a U.S. person receives a gift, inheritance (a type of “gift”) from a foreign person, or a foreign trust distribution. There are certain threshold requirements for reporting the 3520 form, depending on whether the gift is from…