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Merlo
Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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I would appreciate any legal professional tax advice with this

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I would appreciate any legal professional tax advice with this situation: I am a US citizen who will receive a large monetary gift of cash from a foreign friend who has never been to the US and have no bank accounts or assets in the US. It could be close to $300,000... When do I need to file the 3520 form and will this cause the IRS to audit me? Do I need to pay any taxes on the gift if a simple wire transfer happened from my friend's non US bank account to my US bank account? Do I need to get my friend to sign/notarize any paperwork in the case of an audit?

Hello rami,

 

The form 3520 is due the same day as your tax return is due, including any extensions you may have filed for. So the normal due date is April 15th following the year in which you received the money.

 

Filing this form is not a red flag for an audit. In fact filing the form is really more of a protection for you. That way if you ever were to be audited, you would have a clear record of reporting where this money came from.

 

Gifts are never taxable to you, no matter how much you receive. You owe no taxes and you do not need to have any paperwork from your friend, although having a statement from him as additional support will most certainly give you additional documentation to support that this was a gift.

 

If this was helpful please press the Accept button. Positive feedback is also appreciated.

 

Thank you rami

 

 

Customer: replied 7 years ago.
Can I fly abroad to bring in the cash gift through the airport and report amount to the Customs (that way I will avoid bank charges to transfer money over)? OR Is a simple wire transfer from my friend's non US bank account to my US bank account my ONLY way of getting the gift money over to the US?

 

Hello rami,

 

You are certainly free to fly overseas and bring the money back to this country. It does not have to be wire transferred to you.

 

If this was helpful please press the Accept button.

 

Thank you rami

 

 

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