< iframe width="480" height="320" src="https://www.youtube.com/embed/b-eFSLiF8T4?rel=0" frameborder="0" allowfullscreen >< img design="float: left; margin:0 5px 5px 0;" src="http://ustaxreview.org/wp-content/uploads/2021/04/UUyrb6.jpg"/ > Contact us at 888-727-8796 if you require help with your foreign or domestic tax problem (and yes, your information will go through the attorney customer privilege). We have actually successfully helped countless clients handle Internal Revenue Service issues. You can also email us at email@example.com. www.irsmedic.com Type 3520 is officially the 'Annual Return To Report Deals With Foreign Trusts and Receipt of Particular Foreign Presents'. There are 4 sections to the form: Part I -Transfers by U.S. Persons to a Foreign Trust During the Current Tax Year Part II-- U.S. Owner of a Foreign Trust Part III-- Circulations to a U.S. Person From a Foreign Trust Throughout the Current Tax Year Part IV-- U.S. Receivers of Presents or Bequests Received Throughout the Present Tax Year From Foreign Persons In this video we concentrate on Part IV which affects United States individuals who, throughout the current tax year, got: More than $100,000 from a nonresident alien individual or a foreign estate (including foreign individuals related to that nonresident alien person or foreign estate) that you dealt with as gifts or bequests; or More than $15,601 from foreign corporations or foreign collaborations (including foreign persons connected to such foreign corporations or foreign collaborations) that you treated as presents. Form 3520 is just that-- a reporting requirement-- not a tax. The Internal Revenue Service does not desire your money (yet), but wish to understand exactly where your money is! Some individuals incorrectly assume that if no tax is due on their inheritance, then they do not have to submit Type 3520. Kind 3520 is due on the date your income tax return is due (including extensions), and a different type should be filled out for deals with each foreign trust. The Charges: If not submitted, or if the info is incomplete or incorrect. The preliminary penalty: Equal to the greater of $10,000. or 35% of the gross value of any residential or commercial property moved to a foreign trust for failure by a U.S. transferor to report the creation of or transfer to a foreign trust. or 35% of the gross value of the distributions received from a foreign trust for failure by a U.S. individual to report invoice of the distribution. or 5% of the gross worth of the portion of the trust's possessions dealt with as owned by a U.S. individual for failure by the U.S. person to report the U.S. owner information. Additional penalties will be enforced if the noncompliance continues after the IRS mails a notice of failure to adhere to the required reporting. No charges will be imposed if the taxpayer can show that the failure to comply was because of sensible cause and not willful neglect. The time for assessment of any tax enforced with regard to any occasion or duration to which the details needed to be reported in Parts I through III of such Form 3520 relates, will not end before the date that is 3 years after the date on which the required details is reported.