IRS Form 3520: Reporting Foreign Trusts and Gifts
Last reviewed:
Use the IRS Form 3520: Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts Tax Form Calculator IRS Form 3520: Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts as a stand alone tax form calculator to quickly calculate specific amounts for your 2026 3520 state tax return. Alternatively, you can use one of our Combined Federal and State Tax Estimators to quickly calculate your salary, tax, and take-home pay.
What is IRS Form 3520?
Form 3520 is used by U.S. persons to report certain transactions with foreign trusts, ownership of foreign trusts under the grantor rules, or large gifts or inheritances received from non-U.S. persons. It is an informational return and must be filed separately from your income tax return, typically by the same due date including extensions.
The form helps the IRS monitor foreign trusts and ensure transparency in foreign gift reporting, especially in high-net-worth scenarios or cross-border estate planning.
Who Must File Form 3520?
Any U.S. person (individual, partnership, corporation, estate, or trust) must file if they:
- Received more than $100,000 in gifts or bequests from a nonresident alien individual or foreign estate
- Received more than $18,567 (2024 limit) from a foreign corporation or partnership
- Were the owner of a foreign trust under U.S. tax rules
- Engaged in any direct or indirect transactions with a foreign trust
When is Form 3520 Due?
Form 3520 is due on the same date as your federal income tax return, including extensions (generally April 15, or October 15 with extension). It must be filed separately from your 1040.
Penalties for Non-Compliance
- 35% of the gross value of property transferred to or distributed from a foreign trust
- 5% of the gift for each month of late filing for foreign gifts (up to 25%)
- Criminal penalties in cases of willful failure
Last reviewed: : If you believe this form requires an update, please contact us.
Tips for Filing Form 3520
Always file Form 3520 on time, even if unsure of all amounts—late or missed filings incur heavy penalties. For foreign trusts, ensure you also consider Form 3520-A (filed by the trust or on your behalf). Retain documentation for all gifts and transactions and consult a tax professional for complex structures.
Failure to comply with Form 3520 is a major red flag to the IRS and can result in harsh financial penalties. Transparency in reporting foreign assets is critical in today's global tax environment.
Frequently Asked Questions
Can I estimate the General Business Credit?
Start with Form 3800 and then reflect the credit here.
How much would a 401(k) contribution change my net?
Model it with the 401(k) Calculator then rerun this page with your pre-tax amount.
Considering an IRS Offer in Compromise?
Read through Form 656-B to understand eligibility and steps.
What does FICA include?
FICA includes Social Security and Medicare payroll taxes withheld from employee wages.
Important Notes
All calculations are estimates for guidance only. Always review your return and consider professional advice when submitting official filings.