Form 3520 โ Transactions with Foreign Trusts
๐ Form 3520 โ Transactions with Foreign Trusts :-
Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts.
๐ Purpose:-
Used by U.S. persons (citizens, residents, or entities) to report certain transactions with foreign trusts or receipt of large gifts or inheritances from foreign individuals or entities.
๐ You must file Form 3520 if you:
1๏ธโฃ Receive money or property from a foreign trust,
2๏ธโฃ Are the owner of a foreign trust under U.S. tax rules,
3๏ธโฃ Receive gifts or bequests from a non-U.S. person exceeding certain thresholds (e.g., $100,000 from an individual or $ 19,570ย from a corporation/partnership in 2025 โ limits may change each year).
โ ๏ธ Penalty for non-filing:
Up to 35% of the gross reportable amount, so timely filing is very important.
๐
Due date:
Same as the individual income tax return (Form 1040) โ usually April 15, with an automatic extension to October 15 if you file Form 4868.
