It appears thought Turbotax Schedule B interview questions indicate otherwise, in the event of inheritance/gifts from non-residents over $100K, the answer to Schedule B Line 8 must be overwritten to a "Yes." Is this correct? (It appears Turbotax Yes/No determination to this question is incorrectly only based on Foreign Trusts only, not inheritances/gifts).
IF the answer to the above question is indeed Yes:
1. It appears 3520 needs to be mailed separately. If the inheritance amounts first went to an overseas account (established for the sole purpose of receiving the inheritance) and then most of them were subsequently wired into the US account, how should 3520 Part IV Line 54 be filled out? Should the dates, description, and value correspond to the entries in the overseas account or to the US account? There could be several small entries in the overseas account but just a couple wire transfers into the US account.
2. It appears that for Form 8938 (that is included with 1040), the only Sections that need to be filled out are Parts III (interest income from overseas account) and Part IV, Line 15 (with "1" on Line 15, number of Forms 3520). With the following trivial exceptions: Part I Line 9 will be a "No" and Part II Line 12 will be a "No." Nothing in Parts V or VI.
There is a little bit of a nuance here in that Form 3520 does not include "asset" information, rather it includes information on transactions upon which the underlying asset (overseas account) is built. However, form 8938 prohibits duplicative reporting, so I think this is okay. In other words, this is what the IRS would want instead of omitting Form 3520, not indicating anything on Form 8938 Part IV and filling out the asset information on Form 8938 Parts I and V instead. This will not capture the fact that the overseas asset is for getting inheritance.
I know the 1040 can't be e-filed if 3520 is included, this is not relevant for the questions.
