Who this is for
- US persons receiving gifts over the reporting threshold from foreign individuals or estates
Foreign Trusts & Gifts
Foreign gifts & distributions (Form 3520)
Report large gifts from non-US persons or distributions from foreign trusts on Form 3520.
Overview
Why this filing matters
Report large gifts from non-US persons or distributions from foreign trusts on Form 3520.
Note — Gifts from non-US persons.
What you get
- Form 3520 preparation
- Late-filing penalty mitigation where applicable
Our approach
Built for the cross-border edge cases.
Most US-UK filings fail the same way: a treaty position that wasn’t disclosed, a foreign account that slipped under FBAR thresholds, a PFIC election filed in the wrong year, a carry-forward not tracked from one preparer to the next. The cost of any single one of those is rarely catastrophic on its own — it’s the compounding over multiple filing seasons that quietly turns a clean tax life into a six-figure remediation project.
We start every engagement by looking at the edge cases first — the elections, the disclosures, the carry-forwards, the side-effects on next year’s return — and only then turn to the routine line items. The result is a filing that reads cleanly to anyone who picks it up next: another preparer, the IRS, or a successor in your own business.
- Position memo on every meaningful election, with the reasoning written down for the next return
- Carry-forwards (FTC, capital losses, PFIC basis) tracked year-on-year so nothing expires unused
- Plain-English commentary on every position taken — the kind that makes a future audit a non-event
Our process
How we handle your foreign gifts & distributions (form 3520)
Four steps from first call to filed return. Fixed fee confirmed before any work begins.
- 01
Intake
30-minute scoping call. We confirm your situation, required filings, and send a tailored document list.
- 02
Review
We analyse your position, flag any cross-border risks, and confirm the scope and fee before any work starts.
- 03
Prepare
Draft returns and schedules are prepared with plain-English commentary on key positions for your review.
- 04
File
E-file with the IRS / FinCEN, send confirmations, and handle any follow-up notices or questions.
Pricing
Fixed fees — no surprises
Form 3520 preparation starts from £450 + VAT. Late-filing relief with reasonable-cause arguments is quoted separately after reviewing the situation.
FAQs
Common questions about Foreign gifts & distributions (Form 3520)
What's the threshold for reporting a foreign gift?
Over $100,000 in aggregate from a single non-resident individual or estate per year. Lower thresholds (around $18k) for gifts from foreign corporations or partnerships, indexed annually.
Is the gift taxable to me?
Gifts from non-US individuals aren't subject to US income or gift tax for the recipient. The Form 3520 is purely informational — no tax paid — but the penalty for not filing is severe.
What's the penalty for missing 3520?
Up to 25% of the gift value — one of the harshest US tax penalties. Recent court cases (e.g., Farhy, Bittner) have challenged certain penalty structures; we can help with penalty abatement where the facts support it.
Does an inheritance count?
Yes — large inheritances from non-US individuals or foreign estates trigger Form 3520 if over threshold. Equally, bequests of foreign property from non-US decedents often need to be reported.
Ready to get this filed?
Tell us your situation and we'll confirm scope, a fixed fee, and the documents we need — usually within one business day.