Foreign Gifts and Inheritances, IRS Form 3520
If you received gifts or inheritances in excess of $100,000 during 2016; make sure to report it on the form 3520 “Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts” to the IRS. This is due at the same time as your personal income tax returns but is mailed to a separate address.
a) Failure to file this form timely, may subject you up to 25% to 35% (distribution from a foreign trust) penalty on the whole amount of gift or inheritance.
b) Any delinquent filing of the form 3520 should be based “reasonable cause” and in consultation with a tax counsel.
c) Actual or constructive receipt of gift cash or equivalent overseas, may subject you to FBAR filing.