Efile with form 3520

[SusanY1]

This is a known issue with TurboTax - if there is an indication that you are reporting an asset on 3520 instead of on 8938 the system will not let you efile.  The only solution is the workaround mentioned above of repeating the same information on 8938 and removing the 3520 indicator (which some folks are understandably not comfortable doing), or filing the return by mail.  



@TAD-SAT 

[TAD-SAT]

@SusanY1  Oh, OK, the issue everyone's having is ticking the box for Form 3520 submission means one has to MAIL their Federal & State tax returns instead of EFile.  No wonder everyone's so "unhappy" with the 2023 version of TurboTax!  Thanks for admitting there's a bug in TT. Hopefully it gets fixed for 2024.

[TAD-SAT]

@Tackaberry  @SusanY1   I think you're on the right track, @Tackaberry  To avoid mailing my Federal & State Tax Returns, I "unchecked" the box saying I had a pending Form 3520 submission.  I'm in the same situation as you, foreign cash based inheritance.  So I mailed completed Form 3520 to Ogden, UT, and attached Form 8938, which will also be submitted electronically to the IRS, Federal Tax EFile.  I also attached the Foreign form saying the cash was an inheritance, hence not taxed by Uncle Sam.  Since my cash inheritance is >$150K, I also have to submit (Efile) FinCEN (Financial Crimes Enforcement Network) Form 114 to the U.S. Treasury, a different website than the IRS.  The good news for me is both my Federal & State returns were accepted today.  I'll let the IRS figure out Form 3520 and from past experience, they will reach out to me if there's an issue.  IMPORTANT!  Form 3520 has to be submitted by April 15, 2024, and Form 114 no later than October 15, 2024, or the IRS and FinCEN have a hissy fit. At least Forms 3520 & 114 are a one-time deal, versus US taxpayers that have foreign interests in trusts & companies, meaning they have to file these forms annually. For tax year 2024, I'll only have to submit an updated Form 8938 for the inheritance funds still held abroad.  Hope this helps you out. TAD-SAT.

[RobSI]

For foreign invested inheritance money,  I believe you will still need to keep filing 114 FINCEN form unless value drops below $10k. Not a huge deal as its just save a copy from last year,update the values and resubmit.

[Darenl]

I ended up needing to file an extension for both state and federal tax return. 

I looked up online and believe IRS says that 3520 will also get extended to Oct 15 if there’s an extension filed for the return it self. 

my question:

1) is that right? Any downside to actually delay my filing of 3520 (before 10/15)?

2) my 3520 is simple and I can actually file it before 4/15. Is there a downside to file 3520 first but filing tax return itself a couple months later? 

[SusanY1]

Yes, it is correct that if you file an extension for your individual income tax return you are automatically granted an extension of time to file Form 3520. 

If your Form 3520 is ready to go, there is no reason to delay it until you're also ready to file your income tax return.  

@TAD-SAT 

And RobSl is correct, too, that FBAR/FinCEN114 has an ongoing requirement if you leave the assets in foreign bank accounts.  You file this form every year that you have a balance in foreign bank accounts that exceeds $10,000 USD on any day of the year.  

[Darenl]

For those who finished all these nightmare can you share how you mailed the 3520 to IRS P.O. Box? 

does it take FedEx overnight? It has our social security number so I don’t know if it’s a good idea to go with USPS.

The IRS website says you could use private delivery service for your return but I’m not sure about 3520 

@TAD-SAT 

[SusanY1]

The address for private delivery services for Form 3520 is:

1973 Rulon White Blvd.
Ogden, UT 84201

[Darenl]

@SusanY1  Whoa I’m so confused. I thought IRS says it’s

“Internal Revenue Service
P.O. Box 409101
Ogden, UT 84409”

(https://www.irs.gov/filing/where-to-[product key removed]ning-with-the-number-3)

do you thinks it’s possible that the address you mentioned is only for returns, extensions and payments? (https://www.irs.gov/filing/submission-processing-center-street-addresses-for-private-delivery-servic...) And I guess 3520 is neither of them?

[SusanY1]

The PO Box is the preferred address for Form 3520.  However, private delivery services will not all deliver to USPS post office boxes.

 For filers who cannot send to a USPS PO Box or wish to use a courier service (UPS, DHL, etc.) they will use the street address provided above.  

@Darenl  

[Darenl]

@SusanY1 

Sorry for bugging you again. I should have realized that USPS actually has delivery services that has tracking like Priority Express which I think is enough to send such sensitive forms and I plan to use USPS Priority Express

in this case since it’s not a private delivery service, i believe I should send my 3520 to the PO Box  409101 in Ogden, UT 84409 like normal right?

[TAD-SAT]

 @Darenl @SusanY1  

For my 3520, I used USPS "Certified" mail, meaning someone at the other end has to sign for the delivery, to "Internal Revenue Service Center, P.O. Box 409101, Ogden, UT  84409.  USPS will provide a tracking number so you can monitor it's delivery status.  You're welcome. 🙂

[TAD-SAT]

@SusanY1 @Darenl  I have to file the FBAR/FinCEN114 every year?!  Groan ... thanks for the heads-up as I wasn't aware of this U.S. Treasury Department requirement.  Now I know why Uber-Wealthy Americans renounce their US citizenship and take up permanent residency in Singapore.  Fun Fact - 5,315 Americans renounced their US citizenship in 2023.

[Cincilla]

@SusanY1 , on balance do you think it’s preferable to e-file and repeat the same information in the two forms or to print, indicating form 3520 on 8938?

On the one hand, I don’t want to confuse the IRS by submitting the information in both forms when the instructions are clearly to cross-reference.   I’m concerned about appearing as if I hold double the amount that I actually own.  So, for example, if I received a gift of $200,000, by duplicating the information, it may appear as if I own $400,000. 

On the other hand, the IRS strongly prefers e-filing, as do I.

Thank you! 

[michaelcote01]

Ok, if i want to put the information on form 8938 and uncheck the box for Form 3520 (while still completing and mailing in the Form 3520,) where would I put the information on 8938? My wife inherited some real property (retail store and apartment in Europe) that doesn't seem to fit in the Other Foreign Assets (Line 14) category. Would appreciate any insight. Thanks.