Well folks, I've spent the weekend going through all the IRS documents, forms and instructions. Warning! I am not a CPA tax consultant or advisor. Just a normal tax paying American citizen trying to complete my 2023 income tax return.
For my specific situation, which is an inheritance from a foreign country, I have to complete Form 3520, including documents from the Non-USA entity, and MAIL the 3520 to Ogden, UT. As far as I can tell the ability to eFile Form 3520 has never existed, because the IRS instructions specifically state Form 3520 must be snail-mailed in paper form.
On my individual Form 1040 for 2023 tax year, which I will be eFiling, on Schedule B, Part III, Foreign Accounts and Trusts, I have to check "Yes" 3 times, boxes for Para's 7a,7b,8. This tells the IRS to expect a completed Form 3520 documenting my inheritance, and also expect a FinCEN Form 114 sent to the U.S. Treasury Department, because I'll have >$150,000 in foreign financial accounts. For my situation, submission of the Form 3520 and Form 114 are one-time deals. In 2024 tax years and beyond, I only have to complete Form 8938 which is attached & submitted electronically with Form 1040 to the IRS. The prior commenter @RobSI mentioned Form 8930, which I'm not familiar with and doesn't show up in my TurboTax 2023 list of Forms for my tax return.
I elected to keep most of my inheritance in the foreign country because the $USD is so strong right now against most other currencies. There's also the uncertainty of the US Presidential elections this November. I thought it was a good idea to have one foot out of the USA, from a financial risk mitigation perspective. Hoping this helps out other US Citizens in my situation. TAD-SAT
