5% of the gross value of the portion of the amount treated as owned by you.35% of the gross value of the distributions received from a foreign trust.The penalties for failing to file Form 3520 on time are equal to the greater of $10,000 or the following: Who is responsible for filing Form 3520 - me or the person who sent the money?Īs the recipient of the transfer, you are solely responsible for reporting the amount you received during the current tax year with your annual tax filing. However, you are subject to stiff penalties for failing to submit Form 3520 when it is required. Gifts of $17,339 or more from foreign corporations or foreign partnerships (including from people related to these corporations or partnerships).įorm 3520 is considered an “information return,” rather than a tax return, because foreign gifts generally are not subject to income tax.Gifts or bequests valued at more than $100,000 from a non-resident alien individual or foreign estate.US citizens and residents are required to use Form 3520 for: If you are living in the US and received foreign gifts of money or other property, you’ll need to report it on Form 3520 - Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts. Your banking details, including your bank account number.Ĭompare providers for your next large transfer to the USĬompare Clear Documents specific to sending large amounts into the US.If it’s a bank transfer, the financial details of the recipient, including SWIFT code.The name and contact information of the person who sent you the money.US law requires banks and money transfer companies to report: Money transfer businesses, which often solely send money between countries, sometimes have reporting thresholds as low as $1,000. In addition, a bank may report any transaction of any amount that alerts its suspicions. No matter where you’re from, if you’re receiving more than $10,000 in the US, you’ll need to abide by US laws put in place to both protect both your money and the interests of the government.īy law, banks report all cash transactions that exceed $10,000 - the international money transfer reporting limit set by the IRS. Do I have to report large transfers into the US? Read on to familiarize yourself with the tax implications and what you need to do when transferring large amounts of cash – and what the penalties could be if you don’t. If you’re planning to transfer more than $10,000 from overseas, a money transfer service can help you save on fees - but you still need to report the transfer to the US government. All international money transfer services.
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