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I need tax advice about Form 3520 filing, My husband

Hi I need tax...

Hi I need tax advice about Form 3520 filing

Accountant's Assistant: The Accountant will know how to help. Please tell me more, so we can help you best.

My husband received more than $100,000 from a foreign person in 2016, but we didn't know about the form 3520 until today. we already filed our 2016 tax return. what should I do now?

Accountant's Assistant: Is there anything else the Accountant should be aware of?

The form 3520 is due April 18, 2016 and we are late about it. Should I file the form now, is there possible to wavie the penalty since we didn't really know about the form.

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Answered in 9 minutes by:
5/8/2017
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,189
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified

Hi My name's Lane. I can help.

...

Yes, you should always file as quickly as possible to stop any interest from accruing on any penalty that may be levied.

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Also note that this isn't sent with the tax return. ALL 3520's are sent to the same address

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Send Form 3520 to the Internal Revenue Service Center, P.O. Box 409101, Ogden, UT 84409.

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Customer reply replied 1 year ago
Should I attach a cover letter with the form stating we didn't know about the form. What else should I included in the cover letter?

On the late penalty, just write what IRS calls a statement (essentially a cover letter) asking that they

...

(1) abate (waive) penalties for reasonable cause,

(2) that you filed the as soon as you ;earned of the requirement, and

(3) (very important) that you have put the systems in place to be sure that this never happens again.

...

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I can't guarantee this, but in my experience, if you've not had the problem before, getting this done this quickly, they;ll waive the penalty.

...

Please let me know if you have ANY questions at all, before rating me.

I hope you’ll rate me (using those stars, or faces on your screen, by clicking submit) based on thoroughness and accuracy, rather than any good news / bad news content.

Otherwise I’ll receive no compensation for the time & expertise here at all, from JustAnswer.

Thank you!

Lane

..

I hold a law degree, with concentration in Tax Law, Estate law & Corporate law, an MBA in finance, a BBA, and CFP & CRPS (Chartered Retirement Plans Specialist) designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice to clients on three continents since 1986

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Customer reply replied 1 year ago
I will rate you at the end but I still got some related questions. Please help me on these.
1. Can I file this form and write the statement by myself?
2. about the statement, who should I address to , just "Dear IRS"? Is there any certain statement or word that I should NOT use in the statement which may affect their decision.
3. my husband received the money from his mom and other relatives, but the money actually come from his mom (just used other relatives bank account). can we combine the amount together as one large amount, or we better separate the amount by different sender?
4. Some of the money we received as wire-transfer from bank to bank, some of them we received check and deposited in our bank. what description should I put on the form 3520? are those all CASH?

1. If the gift was to him, he files the form himself. If the gift was a joint gift (given to both of you, then you both must fill out the form - your filing status is irrelevant here)

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2.

VIA REGISTERED MAIL

April 30, 2014
Internal Revenue Service*****br />Cincinnati, OH###-##-####br />
Re: TAXPAYER’S NAME
SSN:###-##-####br />Tax Form: 3025
Tax Period: 12/31/2016


To Whom it May Concern:

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3. As long as it was all TO him and all within the same calendar year, his completing the form is fine

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4.Yes, this is cash

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Customer reply replied 1 year ago
I notice the form 3520 should be send to Ogden, UT. Should I address the statement to the same address?

yes

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I would also consider sending by Certified mail. This will both show good faith in being sure it got there AND you'll know it's been received.

...

Lane

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Customer reply replied 1 year ago
Do I expect to receive a letter from IRS after I send the form and statement? How do I know whether the IRS accept my form and statement and agree to abate the penalty, or they don't accept it?

...

You can always call or go to an IS field office

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Customer reply replied 1 year ago
I don't have to hire a CPA or professional to do this if I can do it myself, correct?
Customer reply replied 1 year ago
My husband and I filed joint return in 2016. and we both separately received more than $100,000 from foreign person. should we file 1 form 3520 or we should file 2 separate form?

...

You can always call or go to an IRS field office

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Call the IRS: 1-***-***-**** hours 7 AM - 7 PM local time Monday-Friday

...

https://apps.irs.gov/app/officeLocator/

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… I'd appreciate a positive rating (using the stars or faces on your screen, and then clicking “submit")

...

But if you need more on this, please let me know.

Lane

Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,189
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified
Lane and 87 other Tax Specialists are ready to help you
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Customer reply replied 1 year ago
Can you answer my the last question I posted? THank you.
Customer reply replied 1 year ago
Hi are you still there?

Hi ... so sorry ... I didn't realize you had come back.

...

Yes if you both are gift recipients and both received over 100,000 (each) in a tax year, you'd both need to file a form 3520.

...

But again, filing status is irrelevant. The issue is who received the gift and how much during the tax year.

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Lane
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,189
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Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986

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