It depends. You will need to file a form 3520 if the inheritance is over $100,000 and if your relative:
- Was a US non-citizen for income tax purposes.
- If the inheritance was distributed from a foreign trust prior to you receiving it.
The good news it is an informational form and not an actual tax form. It is usually not considered a taxable event unless there was interest that may have accrued if it was housed in a foreign trust or account.
If you aren't sure of the status of your relative, it may be safe to file form 3520 as a precaution. Please review this IRS instructional link for more information regarding filling out form 3520.
[ Edited 12/29/21|03:00 PM PST]
@Kaidai
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