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Last year my mother visited the US from Australia and

Hi, last year my...

Hi, last year my mother visited the US from Australia and brought my husband and I a large physical cash gift of $30,000 USD, which we then deposited into our joint bank account. How should we go about reporting this physical cash gift from a foreign national to the IRS for tax filing?

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Answered in 5 minutes by:
3/20/2018
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 17,610
Experience: 15years with H & R Block. Divisional leader, Instructor
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Customer reply replied 1 month ago
Thank you Robin. For your information, my husband and I live in Illinois.

The amount is too low to require reporting. When a US person receives a gift from a Non US person they are required to report on form 3520 if the gift is $100,000 or more.

Your gift is not taxable nor reportable.

Please let me know if you need more information.
If not then please scroll up to see the STARS to rate so I am credited. Thank you in advance

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Customer reply replied 1 month ago
Can I ask then, since the bank will lodge a form to the IRS reporting the cash deposit, how would the IRS know that it was not from a taxable or reportable source?

If they ask you can show them a note from your mother or a card but that is only if they ask

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Customer reply replied 1 month ago
Is there no further action we need to take regarding preemptively explaining the source of this deposit to the IRS and explain where it came from? We are worried about an audit.

There is nothing you need to do or required to do. Filing the form 3520 may cause more confusion than you want. The $30k is too low to require that.

Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 17,610
Experience: 15years with H & R Block. Divisional leader, Instructor
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Customer reply replied 1 month ago
Ok, thank you.

There really is nothing to do at this point. You most likely will not hear from the IRS. The bank reports for money laundering purposes if more than $10k but that does not mean you immediately are labled. If you showed a pattern of large cash deposits then that would be different.

Stay calm.

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