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Shcuck
Level 1

Cash Gift from foreign relative - Us Bank to Us Bank or Foreign Bank to Us Bank. Does it matter?

Hi, 

I have been reading a lot of those posts related to Cash Gifts from foreign nationals to US Citizens, and it has been a great learning resource.  I am definitely a lot more prepared to fill out form 3520.  However, I do still have one question (which might not be relevant) regarding the source of the funds. 

 We are going to receive a monetary gift of >$100K from my inlaws who are not US citizens but do have bank accounts in US banks. Are there any different requirements or forms I would need to fill out, depending on where the funds are transferred from (US bank to US bank or Foreign Bank (NOT in my name) to US Bank)?

 

Again this might not be needed as the IRS might not care where the funds were transferred from, but better safe than sorry, as I know how severe the penalties could be for not filing correctly and in a timely manner.

 

Thanks in advance.

4 Replies
Opus 17
Level 15

Cash Gift from foreign relative - Us Bank to Us Bank or Foreign Bank to Us Bank. Does it matter?

1. If you receive a large gift from a non-US person, you must report it, no matter where the bank account is located.

 

2. Separately, if you own a foreign bank account that, any time during the year contains more than US$10,000, you must file an FBAR report.

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
Shcuck
Level 1

Cash Gift from foreign relative - Us Bank to Us Bank or Foreign Bank to Us Bank. Does it matter?

Thanks for the Reply and completely agree with your 2 points.

 

Just to clarify, the question is not related to "Should" I report it or not. I am more concerned if there are any other forms other thanks just the 3520 I might have to fill out depending on if the transfer occurred from within the US (US Dollars bank account to US Dollars bank account) or Mex Peso from a bank in Mexico to US Dollar in a US Bank.  I was not sure if there are any extra requirements based on if the funds were already in the US or not.  Does that make sense to clarify my question?

 

Thanks again.

Opus 17
Level 15

Cash Gift from foreign relative - Us Bank to Us Bank or Foreign Bank to Us Bank. Does it matter?


@Shcuck wrote:

Thanks for the Reply and completely agree with your 2 points.

 

Just to clarify, the question is not related to "Should" I report it or not. I am more concerned if there are any other forms other thanks just the 3520 I might have to fill out depending on if the transfer occurred from within the US (US Dollars bank account to US Dollars bank account) or Mex Peso from a bank in Mexico to US Dollar in a US Bank.  I was not sure if there are any extra requirements based on if the funds were already in the US or not.  Does that make sense to clarify my question?

 

Thanks again.


No, there's nothing else you need do.  The bank is required to report transfers of more than US$10,000, but you play no role in that.  

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
Shcuck
Level 1

Cash Gift from foreign relative - Us Bank to Us Bank or Foreign Bank to Us Bank. Does it matter?

Thanks a lot for the quick reply.

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