If the total value of foreign gifts received received by a U.S. person exceeds a specified threshold amount ($16,111 for 2018), the U.S. person must report each foreign gift to the IRS on Form 3520. This form is an information return, not a tax return, because foreign gifts are not subject to income tax. However, there are significant penalties for failure to file the form. Generally, Form 3520 is due on the date that the taxpayer’s income tax return is due, including extensions.
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