Efile with form 3520

[KeiO928]

Same for 2025 Turbo tax desktop premiere.

Need to paper file the whole thing.

[TAD-SAT]

Yes, it appears TurboTax removed the 3520 form from their 2025 TurboTax return edition. Thanks for the heads-up.  Groan, yet another form to complete for the IRS.

[dami99999]

Hello - Same 3520 issue in 2025 filing.    I inherited foreign cash in 2025.  I purchased premier Turbo Tax and cannot efile when checking 3520 box.    I plan to uncheck the 3520 box on 1040.  On 8938, I included the bank information for the foreign cash inheritance.  When I mail 3520, I plan to write a letter, telling IRS that I did not check the 3520 box on 8938 due to a software issue with Turbo Tax.  I plan to explain that I inherited foreign cash as shown on 3520, and the foreign cash bank information is shown on 8938.  I plan to include a 8938 copy with my 3520 mail.  Is this a good idea, or will it cause further issues with IRS?  Any advice is appreciated.    Thank you everyone.

[DaveF1006]

Yes, this is a good idea.  Here is the complete procedure on how to proceed with this.

1. File your 1040 normally (e‑file OK).

Leave the 3520 checkbox unchecked if TurboTax won’t allow e‑file otherwise.

2. Mail Form 3520 separately, as required. Include:

• Form 3520 
• A short, factual cover letter
• A copy of Form 8938 (optional but fine as it isn't really needed)

3. Keep the letter simple.

Something like:

"To whom it may concern: I am submitting Form 3520 for tax year 2025 as required. Due to a software limitation in TurboTax, I was unable to check the box on Form 1040 indicating that Form 3520 is attached. Form 3520 is being filed separately by mail in accordance with IRS instructions. The foreign cash account related to the inheritance is also reported on Form 8938". Thank you.

4. Will this cause IRS problems?

 No,  as long as:

1. Form 3520 is complete and mailed on time 
2. Your 1040 and 8938 are consistent with the information in the 3520
3. Your letter is simple and factual

The IRS is used to receiving 3520s separately and is also used to software limitations. Your approach is cautious and organized, which is exactly what they prefer.

@dami99999 

[dami99999]

Thank you very much for the advice.  Really appreicate your help!   Thank you.

[TAD-SAT]

I followed exactly what the Intuit tax expert advised when I inherited money internationally in 2023.  Here's some additional advice although I'm not a tax consultant. Just an average guy (engineer by training) trying to keep the IRS happy and get my taxes done.  You only have to file the 3520 once, for the one-time inheritance.  Afterwards, if you keep the money internationally, any dividends or interest needs to be declared as income on your annual 1040 tax return. 

Next, all foreign holdings need to be declared annually when you submit your income taxes on Form 8938 (Statement of Specified Foreign Assets).  If you have >$150,000 USD in foreign assets, you also have to annually complete a FBAR (Foreign Bank & Financial Account Report, FinCEN Form 114) directly to the U.S. Treasury.  All accounts must be reported to the U.S. Treasury, not just the ones >$150,000.  For example, I had to report 4 different accounts, but only one of those was >$150,000.  The U.S. Treasury website for filing the FinCEN Form 114 online (it's really easy) is:  https://bsaefiling.fincen.gov

The easy way would have been to bring all asset from foreign entities into the USA, but the $USD has been rather strong so I'm waiting for an opportune time when FOREX rates are more favorable.  I must be doing everything correctly because I've received no audits or requests for additional information from the IRS or the U.S. Treasury.  I hope this helps out the Intuit Tax community.