USIP ACCOUNTING / Personal Tax
Form 3520 foreign gift reporting
Form 3520 / 3520-A for foreign gifts, inheritances and foreign-trust distributions, plus Form 709 for gifts you make.
01 / WHO IT IS FOR
Who this is for
U.S. tax residents receiving money or assets from parents, relatives or foreign companies abroad, receiving foreign-trust distributions, or making gifts to others.
02 / WHAT’S INCLUDED
What’s included
- Determining whether Form 3520 or Form 709 applies.
- Itemizing foreign receipts: date, amount, sender, relationship and nature of funds.
- Aggregating gifts from related persons in the same year.
- Foreign-trust distributions and Form 3520-A.
- Distinguishing gifts from loans, repayments or pass-through transfers, with support.
- Gift-letter templates in English and Chinese.
03 / PROCESS
How it works
- 01
Complete the workbook
Fill in the Form 3520/709 information workbook.
- 02
Assess requirements
Determine applicable forms based on status and amounts.
- 03
Gather support
Provide bank records, wire receipts and gift letters.
- 04
Prepare and file
Prepare and file the forms on time.
04 / DOCUMENT CHECKLIST
What to prepare
- U.S. tax status and filing status for the year
- Visa status and days in the U.S. (if applicable)
- Each foreign receipt: date, amount, currency and U.S.-dollar value
- Sender name, address, country and relationship
- Bank statements, wire receipts, deposit records, gift letters
- For trusts: trust deed, beneficiary details and distribution statements
- For loans/repayments: loan agreement and repayment proof
Prepare only what applies to you. Share SSNs, IDs and bank details through the agreed secure method, not in a first email.
FAQ
Frequently asked questions
My parents sent money from China. Do I need to report it?
Gifts or bequests from foreign individuals above the IRS annual threshold require Form 3520; gifts from related persons may need to be combined.
What about money from a foreign company?
The threshold for gifts from foreign corporations or partnerships is much lower and adjusts annually; contact us to confirm.
Scope notes
Form 3520 usually carries no tax, but missing it can bring penalties; your facts determine the requirement.
Website content is general educational information, not tax, legal or investment advice for your situation.
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General educational information only; not tax, legal or investment advice. Service scope and engagement arrangements are confirmed directly with the firm. Information on this website does not replace advice tailored to your circumstances.