About Form 8938 (Foreign Asset Reporting) and inheritance

[KeiO928]

Hello,

I am a legal resident in US and my mom passed away in Asia. As a result I inherited cash ($200K) and the fund was deposited into my Asia (non US) bank account. Now I have this bank account which exceeds the 8938 reporting threshold and I think I have to file 8938. But since this inheritance is not federal taxable, do I leave 8938 Part III blank and just report the maximum value, bank account/address, and etc?

If I file this, IRS might think where is the income tax for this $200K and may trigger an audit that is not needed.

Am I too apprehensive?

Also I was looking at form 3520 to file this inheritance, but not sure if this is the correct path.

Thank you!

[DianeW777]

It depends. First, your filing status is a consideration. If you are single you must file Form 8938, based on the amount of the account. If you are married filing jointly the amount would not require you to file it,

• Reporting Thresholds (Form 8938 Instructions)
• Part V would be required for the Part I information
• Part VI is not required

It does not appear that you need to file Form 3520 if you are not an executor of your mom's estate. However, if you are the designated executor, the you would file this form which will eliminate the need for Form 8938.

• Who Must File: Form 3520 - This form is not included in TurboTax. 

Form 3520 is a signature document and filed by itself to the address in the instructions: Form 3520

[KeiO928]

Hi,

Thank you for the response and the links!

I am living in US, married filing joint income so my threshold is >$100,000 and may need to file 8938.

Looking at who must file Form 3520, I found following clause

"More than $100,000 from a nonresident alien individual or a foreign estate (including foreign persons related to that nonresident alien individual or foreign estate) that you treated as gifts or bequests;"

I feel bequests includes inheritance.   

In this case I may need to file both and 3520 for sure.

K