Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.
You are in luck in this situation...gifts are NEVER taxable to the recipient in the US. There is no gift tax return requirement, since your mother is not a US resident or citizen
and so long as you report the gift on form 3520 you're good
Right. But the money went from her French account to my French account first. So the final transfer will be from me to me (from MY French account to MY US account). Will it still be considered a gift in the eyes of the IRS?
Yes, that's still a gift. It doesn't matter that you are transferring it to yourself from your french account
The only thing is, since your french account had a balance of over $10,000 during the year, you will have to fill out form TDF 90.22-1 next year to report your foreign assets
(She didn't want to deal with sending money abroad and wasn't sure how she could then report it to the French Tax system etc, so that's why she preferred to deposit the money from her French bank to mine.)
That's perfectly fine
That French bank account of mine was pretty much dormant since 1998 so I never reported it in my US tax return. Now will I need to report the French bank account as well? Would I use that same form to do so?
You use TDF-90.22-1 for any account you must disclose to the Treasury Department (not the IRS - but you send the form to the IRS for processing) if you had a balance of over $10,000
no the account was never above $10000. Does this form gets sent at the time of the annual federal tax return? What about NY State? Does it treat the gift differently?
No, there is no state tax on the gift either. You do not send the form with your tax return, you send it separately
There's a link to the form
You send it to Detroit for processing
Are you referring to form TDF-90.22-1 or form 3520?
When do I need to file each?
The TDF form - you can find the address to send the form in the instructions to the form
Thank you. I am still unsure of when I need to file/ send each form?
Do I file form 3520 immediately upon receiving gift?
You will need to file the TDF form no later than June 30, 2014
And form TDF-90.22-1 next year at the same time than federal return?
and form 3520?
You file that form with your tax return
Is there anything else I can assist you with today?
So form TDF-90.22-1 by June 30, 2014 and form 3520 with my federal tax return next year before april 15, 2014?
Thank you very much! I think that answers it all.
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