I am in the same boat with you. That is my plan as well.
> " I also should uncheck the 3520 Item C, since I'm only reporting a received gift on 3520, and not a "excepted specified foreign financial assets".
in instruction https://www.irs.gov/instructions/i3520
Check the box in item C only if the Form 3520 filer also files Form 8938 for the same tax year and includes this form in the total number of Forms 3520 reported on line 15 of Part IV, Excepted Specified Foreign Financial Assets, of Form 8938.
so I think it means I don't have to includes this form in the total number of Forms 3520 reported on line 15, since I don't Excepted Specified Foreign Financial Assets, of Form 8938.
Got this answer from Custom GPT, Tax AI CPA mode.
The purpose of Line 15 in Part IV, "Excepted Specified Foreign Financial Assets," of Form 8938, is to report the number of certain informational forms filed by the taxpayer that relate to specific foreign financial assets. These assets are excepted from detailed reporting on Form 8938 because they are reported elsewhere, but the IRS still requires acknowledgment of their reporting on other forms to ensure comprehensive compliance with foreign asset reporting requirements.
The forms that might be relevant here include:
- Form 3520, for transactions with foreign trusts and receipt of certain foreign gifts.
- Form 3520-A, relating to foreign trusts with a U.S. owner.
- Form 5471, for certain foreign corporations.
- Form 8621, for information about passive foreign investment companies (PFICs).
- Form 8865, for certain foreign partnerships.
- Form 8891, for U.S. individuals with certain foreign retirement plans, which is no longer required but was relevant in prior years.
By reporting the number of these forms on Line 15 of Part IV of Form 8938, the taxpayer is indicating to the IRS that although these specified foreign financial assets are not being detailed on Form 8938, they have been reported as required on other relevant forms. This helps the IRS track compliance with foreign asset reporting obligations across different forms and ensures that the taxpayer has adequately disclosed their foreign assets in accordance with U.S. tax laws.
The key takeaway is that Line 15 helps maintain transparency with the IRS about the reporting of foreign assets and avoids unnecessary duplication of information while still ensuring that all necessary disclosures are made.
