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Level 3

Should we file form 3520

if within one tax year, I received gift $90,000 from my parents in China and my wife received gift around $50,000 from her parents in China. We are under the separate account, but we file jointly, do we need file form 3520? Another question is: Are my parents and her parents related?

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Catalyst V

Should we file form 3520

If you are a U.S. person who received foreign gifts of money or other property, you may need to report these gifts on Form 3520, Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign G.... Form 3520 is an information return, not a tax return, because foreign gifts are not subject to income tax.  However, there are significant penalties for failure to file Form 3520 when it is required.

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