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skyluoai
New Member

FORM 3520 Filing Jointly

Both my husband and I received foreign gifts from our parents for more than $100k. Do we file one Form 3520 and check the box 1i for filing jointly?  Do both of us need to sign on this form?

Thank you!

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14 Replies
ToddL99
Expert Alumni

FORM 3520 Filing Jointly

File one Form 3520 and check box 1i for filing jointly.

 

There is only one signature block for the on Form 3520, so only one signature is required. Both taxpayers, however, need to provide their identifying information on the form (Names in block 1a, and TINs in blocks 1b and 1d).

 

From Instructions for Form 3520 (2020):  If you and your spouse are filing a joint income tax return for tax year 2020, and you are both transferors, grantors, or beneficiaries of the same foreign trust, then you may file a joint Form 3520. If you and your spouse are filing a joint Form 3520, check the box on line 1i on page 1.

 

FORM 3520 Filing Jointly

Thanks @ToddL99 for your response. The instructions you posted mention "...beneficiaries of the same foreign trust". Since the original poster's question was for money received from their parents and not a foreign trust, does it mean they can not file 3520 jointly?

ToddL99
Expert Alumni

FORM 3520 Filing Jointly

File a joint Form 3520 to report the receipt of a gift.

 

Many of the instructions for Form 3520 make reference to "trusts", but the form is also used to report "Gifts or Bequests Received During the Current Tax Year From Foreign Persons".

 

In the absence of a separate set of instructions for Joint Filers reporting a gift, the instructions previously posted apply to a Form 3520 that reports a large gift.

 

 

FORM 3520 Filing Jointly

Thank you @ToddL99 for your prompt response and guidance. I have a question for the following scenario:

I received a large gift from Foreign Person X, intended only for me, in my own bank account in 2020. Later in the year my spouse and I receive another large gift from the same Foreign Person X, intended for us, to our joint bank account. Can I report both of these gifts on one Form 3520 filed jointly? If not, may you kindly advise how to file Form 3520 appropriately for this case, thank you.

ToddL99
Expert Alumni

FORM 3520 Filing Jointly

Yes, file a joint Form 3520 reporting both gifts. Gifts are reported in Part IV of the 2020 Form 3520.

FORM 3520 Filing Jointly

Thank you!

FORM 3520 Filing Jointly

If only one person received the gift does that person file form 3520, even though we file regular taxes as married filing jointly?

Vanessa A
Employee Tax Expert

FORM 3520 Filing Jointly

Yes, if only one person received the gift, only that person would file form 3520 even though you file your taxes as Married filing jointly. 

 

This would be similar to income from work or business.  If only one person earns it, it is still only allocated to that person even though they file a joint return. 

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grainger20011
Returning Member

FORM 3520 Filing Jointly

Hello, I'm still a little confused about whether to file a form 3520 jointly of separately.  We file our taxes jointly, but we both received bequeathments from separate parents last year.  So not from the same foreign trust.  Can we still file a joint 3520 and check 1i?  Or should we each file a 3520...My money was given to me, and is in my bank account and my wife's money was given to her and is in her bank account (both accounts in separate foreign countries). We are married, so I guess you could argue that the money is given to both of us, but I want to make sure I get this 3520 form right.  Thank you for any insight!

pk
Level 15
Level 15

FORM 3520 Filing Jointly

@grainger20011  assuming that each of you ( yourself and your spouse ) is a  US persons ( citizen / GreenCard / Resident for tax purposes ),  and each  being  a beneficiary of  gift/ inheritance from foreign person/ trust/estate  meeting the threshold for recognition requirements , should file an individual form 3520. This is true even though you are filing  jointly just like  individual  W-2s, 1099s etc..

 

Does this make sense ?  Is there more I can do for you ?

 

[pk

grainger20011
Returning Member

FORM 3520 Filing Jointly

Thanks very much - This seems to be a different answer to the one Todd gave at the top of this thread with an almost identical situation, and although I suspected we should file individual 3520's, I'm glad you've confirmed that.  It's all a little confusing - Yes, we are both US citizens and file taxes here jointly - both our remaining parents happened to pass away in the same year so we both inherited in the same year and both amounts are over the threshold you referred to.

We will file two separate 3520's and hope that we do not receive any penalties for late filing.

Thank you

 

 

grainger20011
Returning Member

FORM 3520 Filing Jointly

Just re-reading your post - Is filing two separate 3520's actually what you advised or did I misinterpret your answer?

 

Thank you! 

pk
Level 15
Level 15

FORM 3520 Filing Jointly

@grainger20011 , thank you for your response -- YES , I did mean that EACH beneficiary / recipient  needs to file a form 3520.  Please see this  info sheet from the IRS -->

Gifts from Foreign Person | Internal Revenue Service (irs.gov)

 

Note that if the amounts  so gifted / acquired  rested in a foreign bank account under your signature authority / ownership , you may also have to file forms  for FBAR  ( form 114 at www.fincen.gov )  and/or  form 8938.

 

Is there more I can do for you ?

grainger20011
Returning Member

FORM 3520 Filing Jointly

Thank you - We will file two 3520's.

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