Form 3520

Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts

Tax form 3520 is an informational form to report certain transactions with foreign trusts, ownerships of foreign trusts or receipt of certain large gifts from certain foreign persons. U.S. citizens and U.S. residents that are the grantor or beneficiary of a foreign trust must report the following events on form 3520: the formation of a foreign trust, the transfer of cash or assets to and from a foreign trust, and the receipt of distributions from a foreign trust. IRS form 3520 has a fourth filing requirement separate from the foreign trust information. This fourth requirement focuses on when a U.S. person receives a gift or inheritance of more than $100,000 from a foreign person or a gift of more than $15,797 from a foreign partnership or corporation.