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SandyG19
Level 2

Foreign gift tax on 1040 extension -- problematic?

A person filed for a 1040 extension on May 14, 2021.  He paid taxes on the extension later, on May 18, 2021.  

I see many people on the internet reporting problems when filing form 3520 after April 15, even after an extension.  The penalty for late submission seems to spew out right away, even with an extension.   Seems to be on auto-mode.  And then you need to appeal, etc.   The person has over $100K in foreign gifts and should file the 3520, but is concerned about the auto penalty deal.  

Does anybody have had experience with this?

Thanks 

4 Replies
pk
Level 12
Level 12

Foreign gift tax on 1040 extension -- problematic?

@SandyG19 , is this a legitimate questions concerning yourself or are you preparing a return  for somebody else ?    If this is a questions regarding your OWN situation -- then please  provide some more details --- your immigration status  (  US citizen/ Green Card holder /  Resident for tax purposes or ?  ) ; if not US citizen then  country of citizenship;  is this gift from one  person or from an entity ( estate / trust ) -- which country ;   what is the amount; when received;  are there any conditions attached to the gift/inheritance or what ?

 

stay safe 

pk

SandyG19
Level 2

Foreign gift tax on 1040 extension -- problematic?

Thanks for your reply .  My question has to do with consequences of filing 3520 within the extension time.  Not really about how and why to file it.  I have been notified of people complaining about an auto-penalty when the 3520 is filed within the extension time, but the IRS considered it late. So I would like to know if others have had similar experience. Sorry if I was not clear.  

pk
Level 12
Level 12

Foreign gift tax on 1040 extension -- problematic?

Please see this IRS notice for tax year 2020  ---- https://www.irs.gov/pub/irs-drop/n-21-21.pdf

 

That is the latest information on this  that I am aware of  --- 

what is it you are trying to achieve -- fix an issue with  TurboTax or trying to file a form 3520 and making sure that you are  not penalized or what  ?

SandyG19
Level 2

Foreign gift tax on 1040 extension -- problematic?

Trying to get a question answered if someone had problems after filing 3520.

Thanks

 

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