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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 14431
Experience:  15years with H & R Block. Divisional leader, Instructor
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I have a client who received money ($515K) from a foreign person

Resolved Question:

I have a client who received money ($515K) from a foreign person in 2011. This money was a gift. My understanding is that the person receiving the money does not have to worry about gift tax; only the person gifting the money will have to inquire. Nonetheless I know form 3520 has to be filled out by my client. My question is does she have to fill out if it is a initial; final or amended return? The instructions are vague. My client is an individual and did not receive any money with regards XXXXX XXXXX foreign trust.
Submitted: 5 years ago.
Category: Tax
Expert:  Robin D. replied 5 years ago.

Robin D :

Thank you for using Just Answer
You are correct in your understanding. The Form 3520 needs to be filed with the tax return of the receiver in the year of the gift with the tax return for that year. If the gift was received in 2011, the 2011 tax return due in April 2012 needs to include the Form 3520.

Robin D :

Thank you in advance for clicking ACCEPT

Customer:

Does she need to check off the initial or final box on the first page of form 3520. The address to file the 3520 is different than the address of the 1040? Which address do you file this forms? Are you sure they are to be filed together; nothing in the instructions indicates for them to be accompanying each other?

Customer:

Thanks

Robin D :

File Form 3520 separately from the income tax return. The due date for filing Form 3520 is the same as the due date for filing the annual income tax return, including extensions. You file an annual Form 3520 for all reportable foreign gifts and bequests you receive during the taxable year.

Robin D :

You need not mark any of the boxes as they refer to a trust and filing of the 3520. If you are using a software or program that demands an entry then use Final.

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