Form 3520

[tianwaifeixian]

"one is acting as a nominee or intermediary" what does that mean? I received gift from 3 ppl. Two  are relatives but the 3rd one is not. do I need to file for the 3rd one as well (the amount for the 3rd person is lower than the threshold)

[pk]

@tianwaifeixian , Please could you put more details on your question -- I want to be sure I understand the  full situation before attempting an answer .  In the meantime, the form is per year and therefore the threshold is based on total amounts received ( aggregation of all gifts from foreign persons/trusts/estates etc. ).

I will come back once I hear from you--yes ?

pk

[tianwaifeixian]

here are some details. Say in 2023, I received gift money wired to my US account from 3 different persons  A （say 70k), B (50k), and C(40K).

Now A and B are related, but C is not related to anyone. In this case, do I only report A and B (since they are related and aggregated amount is greater than the reporting threshold 100k), or do I also need to report C on 3520. Thanks! 

[pk]

@tianwaifeixian , I would strongly suggest  ( for the example  you have provided ) that you recognize all three gifts.  I say this because   (a) there is tax consequence for you  and (b)  looking at what the law is trying to do is  to  extend the umbrella over  cases where   the donor  is trying to avoid recognition by parceling out the gift source ( artificially ) amongst related persons and/or trusts/estate etc.  Just do the right thing  and recognize all the gifts  -- it shows an intent to follow the spirit of the law.

At the same time just following the letter of the law ( and not the spirit ) you have to report ONLY person A and B because you know they are related ( and therefore require aggregation ) while C does not have to be recognized.

That is my view .

Hope this helps.