Filing requirements for foreign gift

[ImmigrantUser]

If I receive $70K gift from parents in a foreign country and my spouse receives $80K as well. Do we need to file Form 3520? If Yes, does this form need to be submitted with tax return or can be submitted before tax filing? (e.g. If money is received in April 2024, can we submit this form in June 2024)

[SusanY1 · Accepted solution]

When the form is required, it can be filed sooner than your tax return, as the two are filed separately. 

The threshold for the reporting is for each of you individually, so it does not sound like you have a filing requirement this year.  Do be aware that it is the total of all gifts in the year, not a single gift, that triggers the requirement to file.  

[ImmigrantUser]

hi Susan, thank you so much for your response!

We completed 8938 form as total amount crossed 100k limit. 

Is there any harm in filing 3520 to declare the source of money in foreign accounts? Would this cause more confusion?  TIA

[SusanY1]

There isn't any harm in filing the form when below the threshold and it isn't likely to cause any confusion.  If you anticipate that you may received additional gifts before the end of the year, however, you may want to wait and file a single instance of the form in the new year.  

[ImmigrantUser]

Thanks a ton! Your responses have been very helpful!

One last follow up - Deadline for the 3520 is March 15th or April 15th. 

TIA!

[SusanY1]

The deadline for Form 3520 is April 15 for most individual taxpayers.  If your deadline is extended to file your federal Form 1040, then it is also extended for Form 3520, even though it is not filed with your federal income tax documents.   Technically it is due the 15th day of the 4th month after the end of your tax year, but the overwhelming majority of US taxpayers are on a calendar year filing basis.

This includes timely filed automatic six-month extensions, two-month extensions for taxpayers abroad, and extensions granted by Congress due to natural disasters or other declared emergencies (usually!  You would need to check the rule each time one of these extensions is granted).  

Happy to help!  Do let us know if you have any more questions, of course.