IRS Form 3520 (Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts) is used by U.S. persons to report certain transactions with foreign trusts, ownership of foreign trusts, and the receipt of large foreign gifts or bequests.

For example, John Doe is a U.S. citizen and resident of Orlando, Florida. John has an uncle who is a citizen and resident of Germany. John’s uncle makes a cash gift to John of $250,000 in 2023. John must file a Form 3520 to report the gift from a foreign person.

What Information is Reported on Form 3520?
  1. Foreign Trust Transactions: To report certain transactions with foreign trusts, such as:
    • Transfers of money or other property to a foreign trust.
    • Receipt of distributions from a foreign trust.
  2. Ownership of Foreign Trusts: To report ownership of a foreign trust if a U.S. person, directly or indirectly, owns more than a certain percentage of the trust.
  3. Foreign Gifts: To report the receipt of gifts or bequests from foreign persons which exceed certain thresholds.
Video Tutorials on Form 3520

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Additional Information

Taxpayers can find more information in the Form 3520 Instructions and on the IRS website for foreign trust reporting.