@TKwan
(a) why did you have to file form 3520 --- for cash inheritance / gift from a foreign person or what ?
(b) from your post it sounds like you have foreign bank account -- if so you come under the rules of FBAR ( form 114 at FinCen.gov -- only on-line ) and possibly FATCA ( form 8938 along with your tax return ). If you need more these forms and the requirements , I will be happy to answer your questions and/or provide information on these .
(c) Assuming your property was located in a Treaty country , your filing requirements are as follows :
1. you file your return on the disposition of the asset in the foreign country ( following the tax laws/rules of that country ) -- this is so you have the details of the taxes imposed / levied by that country.
2. you prepare your return for the year in which the alienation of the asset takes place under US laws generally using form 8949 declaring the basis -- FMV at the time of the passing of the decedent -- and sales proceeds etc. ).
3. Then under Deductions and Credits look for Foreign Tax Credit and you fill out the Foreign Source income ( generally the US Gain on the disposition of the asset ) and the foreign taxes paid on this doubly taxed income ( both US and the foreign country having taxed the same income ). Note this requires that US and that other country have a tax treaty with a "double taxation" clause or similar reciprocal conditions.
(d) Depending on the amount of proceeds that rest in a foreign account ( which you own and/or have signature authority ) you have to report the maximum aggregate value for purposes of FBAR and FATCA -- as mentioned above.
(e) The transfer of the monies from another country to the USA does not require any reporting -- your receiving bank account will automatically raise a SAR ( Suspicious Activity Report ) for any transfer equal or over US$10,000 and nothing happens to this. If the amounts are significantly larger ( => 1 Million ) then you may need US treasury permission --- also your other country may need notification of large US$ / local currency outflow .
Is there more I can do for you ?
