Dear Turbo Tax Community,
May we please get your assistant on whether my wife should file a Form 3520 to IRS for 2020 return or not.
Here is the situation applying to my wife:
A nonresident alien individual (name M) sent an international wire of $50,000 to my wife on 11/19/20;
A nonresident alien individual (name X) sent an international wire of $50,000 to my wife on 12/10/20;
A nonresident alien individual (name F) sent an international wire of $50,000 to my wife on 12/23/20.
In total, my wife received $150,000 from 3 different nonresident alien individuals in 2020.
After reading Who Must File section on https://www.irs.gov/instructions/i3520, our understanding is that since she has not received more than $100,000 from just one (a) nonresident alien individual, she does NOT need to file Form 3520 to IRS.
Please let us know if our understanding is correct,
Greatly appreciated,
Leo
You are correct. Unless your wife received more than $100,000 from a nonresident alien individual, then she is not required to file Form 3520
Who Must File
File Form 3520 if any one or more of the following applies.
You are the responsible party for reporting a reportable event that occurred during the current tax year, or you are a U.S. person who transferred property (including cash) to a related foreign trust (or a person related to the trust) in exchange for an obligation or you hold a qualified obligation from that trust that is currently outstanding.
You are a U.S. person who, during the current tax year, is treated as the owner of any part of the assets of a foreign trust under the rules of sections 671 through 679. U.S. person and owner are defined later.
Complete the identifying information on page 1 of the form and Part II. See the instructions for Part II.
You are a U.S. person (including a U.S. owner) or an executor of the estate of a U.S. person who received (directly or indirectly) a distribution from a foreign trust during the current tax year; or you are a U.S. person who is a U.S. owner or beneficiary of a foreign trust and in the current tax year you or a U.S. person related to you received (1) a loan of cash or marketable securities (including an extension of credit) directly or indirectly from such foreign trust, or (2) the uncompensated use of trust property; or you are a U.S. person who is a U.S. owner or beneficiary of a foreign trust and in the current tax year such foreign trust holds an outstanding qualified obligation of yours or a U.S. person related to you. For definitions, see U.S. Person, Owner, Distribution, U.S. Beneficiary, and Related Person, later.
You are a U.S. person who, during the current tax year, received either:
More than $100,000 from a nonresident alien individual or a foreign estate (including foreign persons related to that nonresident alien individual or foreign estate) that you treated as gifts or bequests; or
More than $16,649 from foreign corporations or foreign partnerships (including foreign persons related to such foreign corporations or foreign partnerships) that you treated as gifts.
You are correct. Unless your wife received more than $100,000 from a nonresident alien individual, then she is not required to file Form 3520
Who Must File
File Form 3520 if any one or more of the following applies.
You are the responsible party for reporting a reportable event that occurred during the current tax year, or you are a U.S. person who transferred property (including cash) to a related foreign trust (or a person related to the trust) in exchange for an obligation or you hold a qualified obligation from that trust that is currently outstanding.
You are a U.S. person who, during the current tax year, is treated as the owner of any part of the assets of a foreign trust under the rules of sections 671 through 679. U.S. person and owner are defined later.
Complete the identifying information on page 1 of the form and Part II. See the instructions for Part II.
You are a U.S. person (including a U.S. owner) or an executor of the estate of a U.S. person who received (directly or indirectly) a distribution from a foreign trust during the current tax year; or you are a U.S. person who is a U.S. owner or beneficiary of a foreign trust and in the current tax year you or a U.S. person related to you received (1) a loan of cash or marketable securities (including an extension of credit) directly or indirectly from such foreign trust, or (2) the uncompensated use of trust property; or you are a U.S. person who is a U.S. owner or beneficiary of a foreign trust and in the current tax year such foreign trust holds an outstanding qualified obligation of yours or a U.S. person related to you. For definitions, see U.S. Person, Owner, Distribution, U.S. Beneficiary, and Related Person, later.
You are a U.S. person who, during the current tax year, received either:
More than $100,000 from a nonresident alien individual or a foreign estate (including foreign persons related to that nonresident alien individual or foreign estate) that you treated as gifts or bequests; or
More than $16,649 from foreign corporations or foreign partnerships (including foreign persons related to such foreign corporations or foreign partnerships) that you treated as gifts.