Married couple receiving a 99k gift each, do they need to file 3520?

[angela3017]

If a married couple, each received a gift from a family member living abroad. Each gift to their personal bank accounts is for 99k. Do they need to file 3520 as the total gift is over the 100k threshold?

Thank you.

[Anonymous_]

I'll page @pk but see https://www.irs.gov/instructions/i3520#en_US_2023_publink1000190314

[pk]

@angela3017 , whereas the form 3520 is per person on a joint return,  the amounts mentioned  may arouse suspicion that the amounts were  selected to avoid  scrutiny ( especially if the donor were the same person or related ).  Therefore I would go ahead  and file the forms 3520  ( even if under the threshold ) , especially since there is no tax implication --- it costs nothing but does prevent undue scrutiny.  That is my view on such things.

pk

[Opus 17]

It's important to understand that sometimes, organizing your financial affairs to avoid certain reporting rules can constitute a crime called "structuring", even if the actual purpose of the transaction is perfectly legal.  For example, if your relative plans to give you $300,000, and you arrange things to each receive $99,000 in 2023 and $51,000 in 2024, that could raise concerns that you have "structured" the arrangement to avoid filling out the report, even though it would be perfectly legal and tax-free to receive the gift as a lump sum.  Since there is no tax owed when you receive a gift under US law, reporting will not cost you anything.