Efile with form 3520

[TAD-SAT]

@michaelcote01  For inherited foreign assets such as real estate, things get complicated for the Form 3520 + FBAR FinCEN Form 114.  If I were you I'd request an extension from the IRS to file your income taxes.  This request automatically extends the deadline required to file Forms 3520 & 114.  Gives you time to review the mountains of "How To" IRS instructions, assuming you or your spouse have a finance background.  Or you can hire a Tax CPA who understands how to properly complete these forms.  After all, tax day is tomorrow.  Good Luck!  TAD-SAT.

[SusanY1]

It is common with these reports, due to the nature of the reporting, that your net worth is inflated. 

The reports aren't designed (or interpreted) as a report of your net worth.

Form 3520 just tells us where the assets came from and doesn't report on the actual accounts themselves.    The others very frequently inflate the assets due to transfers.  For example, if I have $50,000 in my foreign savings account, and move it to checking, I have to report that $50,000 in both accounts.  If I subsequently change banks and move the assets again, I could be reporting the same $50,000 three times.  This is known, and expected.  

Whether you efile or print and mail should be based on what is comfortable to you, knowing the limitations of each.  It won't confuse the IRS or FinCEN, though, and on the off-chance they ask you anything about either form it will be simple to explain.  
 

@Cincilla 


For real property assets, unfortunately, this work around won't work as there is nowhere to report those on 8938.

@michaelcote01 

[TAD-SAT]

@Cincilla  I'm in a similar situation to yourself and this is how I handled it for 2023 tax year.  I completed Form 3520 and MAILED it to the IRS Service Center in Ogden, UT, + attached a print-out of the Form 8938 + Foreign documentation explaining the funds were an inheritance.  Gifts & Inheritance are documented in Part-IV of Form 3520.  From what I can tell, Form 3520 and Form 8938 have different purposes.  3520 explains HOW you received the foreign funds, and 8938 explain WHERE the foreign funds are located.  Hence there should be no overlap from the IRS's perspective.  I electronically filed by Tax Forms to the IRS, including Form 8938, which was a duplicate of the 8938 I printed out and mailed to the IRS in Ogden, UT. Don't forget you also have to complete FBAR FinCEN Form 114 for the U.S. Treasury Department (separate from the IRS).  Both my Federal & State income tax returns have been accepted, so I must have done something right.  Good luck!  TAD-SAT.

[michaelcote01]

thanks for your reply...it aligns with what I thought, unfortunately. The fact that I also can't efile my state return as a result of this stupid problem really adds insult to injury. This inheritance really complicates our tax situation, so going forward we'll be using a professional. So long, Turbotax!

[RobSI]

Paper filed on Friday and checked status at IRS online account. Apparently paper filing of 1040 may take as long as 6 weeks to process. I'm sure IRS will want to send a word of thanks to Intuit for creating more delays 😉

[mallanmba]

2023 is the first time I have not been able to E-File because I stated that I needed to file form 3520 and 3520-A. 3520 and 3520-A are sent to a different address, this infuriating bug is forcing me to paper-mail my taxes for the first time in over a decade. Is there any way to get this fixed by Intuit, and get verification that it has been fixed?

[Darenl]

@TAD-SAT sorry buddy  to bug you again. When you said you filed form 3520 via USPS Certified Mail --- you mentioned that signature is required -- it's my first time sending anything by mail to IRS so I am being extremely n00b:

1. For 3520, it's a P.O. Box, and that's ok for certified mail that needs signature?  Someone will be there to sign? 

2. Did you use Return Receipt service so that you also get the copy of the signature of whoever signs when receiving it? 

3. Did you use First Class mail or Priority Mail with added Certified Mail service?  

4. If it's Priority, did you just use flat rate envelope (10" x 6")? That's the smallest one I plan to use because I am even not sure that IRS P.O. Box would be big enough for larger size envelope.. which size did you use? 

Thanks so much! 

[TAD-SAT]

Hi Darenl, I used a standard letter envelope, not a USPS envelope. Sent via Certified Mail. Despite the box number, yes, the IRS will acknowledge receipt into the USPS tracking system. I kept a print out of the tracking number receipt in case the IRS says I didn’t receive their 3520 form. Good luck!

[Mitch-539]

I face the same issue for Tax year 2024.  I understand I must snail mail my Form 3520 to the IRS. That part I accept. Yet it also sounds like TurboTax will not efile your 1040, because you indicate the 3520 is required.  If this is still the case why use TurboTax?  Please tell us if this has been corrected with the 2024 software.  

[xingchen199919991999]

One year past, this problem is still existing for 2024 filing. Is there a solution?

[TAD-SAT]

Sorry folks, I haven’t done my taxes yet and don’t know if Intuit has fixed their Form 3520 issue. 

[realtorliu]

I read almost all concerns of Form 3520 for last year (2023), not sure if this e-file form 3520 issue is resolved by TT for 2024 etax return?

[XP666]

Thank you for the information. I'm having the same issues with TurboTax, I guess I have to file paper return 2024. I'll follow you to buy TaxCut 2025 to avoid this happens again. This is the third year I have to filed paper return with the same issue. TurBoTax did nothing to help me. Could you please tell me what version of TaxCut did you buy? Thank you. 

[RobSI]

I  used HRBlock this year and eFile went through fine with 3530 forms by paper as expected. A bit of a learning curve preparing as its not as easy or well rounded as Turbotax,  but manageable 

[treasure hunt]

I face the same issue with TurboTax ***2024*** with 3520. While many TurboTax users think this is a bug, Intuit is expected to provide a reasonable justification to disable e-file with 3520 being sent separately.