form 3520

[clairechiang91ntu]

I have a question about the form 3520. My spouse and I will file 2022 tax jointly. He received money gifts wired from his family outside of the US. One was wired in 2022 from his dad(neither US citizen nor US permanent resident) and the amount is lower than $100k. The other one was wired in 2022 from his grandma (neither US citizen nor US permanent resident) and the amount is lower than $100k. Both money gifts were wried from the foreign bank. The total of these two gifts exceeds $100k.

For the case, should we still file form 3520? These two gifts were from two individuals separately, and each of money gift is lower than $100k. My understanding to IRS' webpage form 3520 is that we don't need to file.However, the sum is over $100k. So, I'd like to check again with the expertise to confirm if my understanding is correct. Thank you! 

[DaveF1006]

According to form 3520 instructions, a 3520 must be filed if you 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; 

Interpreting this, if his dad and grandma are related, then the gift needs to be reported on the 3520 if the total from both is more than $100,000.

[clairechiang91ntu]

Thank you so much, Dave! 

One followup question is how to define "related"? Grandma is not his father's mom. Can we define it as not related? 

Thank you!  

[DaveF1006]

Here is how this document is worded. You must report 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; 

If Dad and Grandma aren't related, than the gift is less than $100,000, it doesn't need to be reported on a 3520 because the relationship between Dad and Grandma is not a familial relationship. 

[clairechiang91ntu]

Thank you, Dave! 

I guess we can also refer to this. grandma is dad's mom-in-law which is also considered as related if following the below.  Please feel free to correct me if I'm still wrong. Thank you! 

https://www.irs.gov/charities-non-profits/charitable-organizations/member-of-the-family#:~:text=A%20....