1040 Schedule B Line 8 &Form 3520

[FederalTaxQuestion]

I received a small sum of money < $100,000 as a gift from my mother not a US Citizen from Overseas. 

1. Do I need to mark "Yes" on Form 1040 Schedule B Line 8.  Since I did receive a distribution  from a foreign Trust?

2.  If I mark "YES" to the above question. The line says "You MAY be required to file Form3520, See Instructions". Since the gift amount is < $100,000 do I still need to file Form 3520 ?

Should I mark YES and NOT file Form 3520 as gift amount is <$100,000 OR mark YES and file Form 3520?

Thanks

[DavidD66 · Accepted solution]

You need to mark "Yes" on line 8 of Schedule B.  If the amount was less than $100,000 you are not required to file Form 3520.  If not required, I would not file it.  The filing threshold is as high as it is for a reason.  But be prepared to receive a routine letter of inquiry about it, and make sure you have documentation that you can submit if requested.