Yes, this is a good idea. Here is the complete procedure on how to proceed with this.
1. File your 1040 normally (e‑file OK).
Leave the 3520 checkbox unchecked if TurboTax won’t allow e‑file otherwise.
2. Mail Form 3520 separately, as required. Include:
- Form 3520
- A short, factual cover letter
- A copy of Form 8938 (optional but fine as it isn't really needed)
3. Keep the letter simple.
Something like:
"To whom it may concern: I am submitting Form 3520 for tax year 2025 as required. Due to a software limitation in TurboTax, I was unable to check the box on Form 1040 indicating that Form 3520 is attached. Form 3520 is being filed separately by mail in accordance with IRS instructions. The foreign cash account related to the inheritance is also reported on Form 8938". Thank you.
4. Will this cause IRS problems?
No, as long as:
- Form 3520 is complete and mailed on time
- Your 1040 and 8938 are consistent with the information in the 3520
- Your letter is simple and factual
The IRS is used to receiving 3520s separately and is also used to software limitations. Your approach is cautious and organized, which is exactly what they prefer.
@dami99999
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