Form 3520: Reporting Foreign Gifts and Trusts
Form 3520 is the annual return U.S. persons (and executors of estates of U.S. decedents) file to report certain transactions with foreign trusts, ownership of foreign trusts, and receipt of certain large gifts or bequests from certain foreign persons. For gifts, the instructions (Rev. December 2025) count more than $100,000 from a nonresident alien individual or a foreign estate, and more than the section 6039F threshold amount from foreign corporations or foreign partnerships, which Rev. Proc. 2025-32 states as $20,573 for taxable years beginning in 2026.
Maintained by Archie Chang · Sources checked against IRS text on November 2, 2026 · Methodology & sources
What Form 3520 reports
The IRS About Form 3520 page lists three kinds of reporting:
“U.S. persons (and executors of estates of U.S. decedents) file Form 3520 to report:
Certain transactions with foreign trusts.
Ownership of foreign trusts under the rules of sections Internal Revenue Code 671 through 679.
Receipt of certain large gifts or bequests from certain foreign persons.”
The same page listed this under “Recent developments” when we checked on November 2, 2026:
“Change to Form 3520 (Rev. December 2023) -- 18-JAN-2024”
The Form 3520 is marked Rev. December 2023, and the instructions are marked Rev. December 2025 with a note on which form revision they go with:
“(Rev. December 2025)
(Use with December 2023 revision of Form 3520.)”
“Continuous-use revision. Use these instructions for tax year 2025 and subsequent years until a superseding revision is issued.”
“U.S. persons (and executors of estates of U.S. decedents) file Form 3520 with the IRS to report: • Certain transactions with foreign trusts, • Ownership of foreign trusts under the rules of sections 671 through 679, and • Receipt of certain large gifts or bequests from certain foreign persons. A separate Form 3520 must be filed for transactions with each foreign trust.”
Who must file Form 3520
The instructions begin with one sentence and then give four items, numbered 1 to 4. The four items are quoted in full below, so this is the complete list for the “Who Must File” heading; each item sends the filer to its own definitions and to a Part of the form.
“File Form 3520 if any one or more of the following apply.”
“1. You are the responsible party for reporting a reportable event that occurred during the current tax year, or you are a U.S. person who transferred property (including cash) to a related foreign trust (or a person related to the trust) in exchange for an obligation or you hold a qualified obligation from that trust that is currently outstanding. For definitions, see Responsible Party, Reportable Event, Qualified Obligation, and Person related to a foreign trust, later.”
“2. You are a U.S. person who, during the current tax year, is treated as the owner of any part of the assets of a foreign trust under the rules of sections 671 through 679. U.S. person and owner are defined later.”
“Note: You are required to complete Part II even if there have been no transactions involving the trust during the tax year. You may also be required to complete a substitute Form 3520-A, Annual Information Return of Foreign Trust With a U.S. Owner, and attach it to your Form 3520.”
“3. You are a U.S. person (including a U.S. owner) or an executor of the estate of a U.S. person who received, directly or indirectly, a distribution from a foreign trust during the current tax year; or you are a U.S. person who is a U.S. owner or beneficiary of a foreign trust and in the current tax year you or a U.S. person related to you received (1) a loan of cash or marketable securities (including an extension of credit) directly or indirectly from such foreign trust, or (2) the uncompensated use of trust property; or you are a U.S. person who is a U.S. owner or beneficiary of a foreign trust and in the current tax year such foreign trust holds an outstanding qualified obligation of yours or a U.S. person related to you. For definitions, see U.S. Person, Owner, Distribution, U.S. Beneficiary, and Related Person, later.”
“4. You are a U.S. person who, during the current tax year, received either:
a. More than $100,000 from a nonresident alien individual or a foreign estate (including foreign persons related to that nonresident alien individual or foreign estate) that you treated as gifts or bequests; or
b. More than the section 6039F threshold amount from foreign corporations or foreign partnerships (including foreign persons related to such foreign corporations or foreign partnerships) that you treated as gifts.”
Foreign gift thresholds
Item 4 sets two tests. The first is a fixed $100,000 in the instructions. The second is the section 6039F threshold amount, which is published in the annual inflation adjustment Rev. Proc. that the instructions point to; the table gives the amounts from the two Rev. Procs. cited for 2025 and 2026.
| Gifts received from | Amount | Taxable years | Where stated |
|---|---|---|---|
| A nonresident alien individual or a foreign estate (including foreign persons related to them) | More than $100,000 | Current tax year in the instructions (Rev. December 2025) | Instructions for Form 3520, Who Must File item 4a and Line 54 |
| Foreign corporations or foreign partnerships (including foreign persons related to them) | More than $20,116 | Taxable years beginning in 2025 | Rev. Proc. 2024-40, section 2.48 |
| Foreign corporations or foreign partnerships (including foreign persons related to them) | More than $20,573 | Taxable years beginning in 2026 | Rev. Proc. 2025-32, section 4.47 |
“For taxable years beginning in 2026, § 6039F authorizes the Secretary of the Treasury or the Secretary’s delegate to require recipients of gifts from certain foreign persons to report these gifts if the aggregate value of gifts received in the taxable year exceeds $20,573.”
“For taxable years beginning in 2025, § 6039F authorizes the Secretary of the Treasury or her delegate to require recipients of gifts from certain foreign persons to report these gifts if the aggregate value of gifts received in the taxable year exceeds $20,116.”
The instructions’ Part IV lines add how the tests work:
“Line 54. Check “Yes” if during the current tax year, you received more than $100,000 that you treated as gifts or bequests from a nonresident alien, including a distribution received from a domestic trust treated as owned by a foreign person or a foreign estate. Complete columns (a) through (c). To calculate the threshold amount of $100,000, you must aggregate gifts from different foreign nonresident aliens and foreign estates if you know, or have reason to know, that those persons are related to each other or if one is acting as a nominee or intermediary for the other. See Related Person, earlier.”
“For example, if you receive a gift of $75,000 from Abby, a nonresident alien individual, and a gift of $40,000 from Brian, a nonresident alien individual, and you know that Abby and Brian are related, you must answer “Yes” and complete columns (a) through (c) for each gift.”
“However, if you answered “Yes” but none of the individual gifts or bequests received exceeds $5,000, do not complete columns (a) through (c). Instead, enter in column (b) of the first line, “No gifts or bequests exceed $5,000.””
“Line 55. Check “Yes” if you received aggregate amounts in excess of the section 6039F threshold amount during the current tax year that you treated as gifts from any of the following.
Foreign corporations.
Foreign partnerships.
Any foreign persons that you know or have reason to know that are related to such foreign corporations or foreign partnerships.”
“A gift to a U.S. person does not include any amount paid for qualified tuition or medical payments made on behalf of the U.S. person.”
Gift and estate tax rules for the person who gives the gift are on separate pages: gift tax exclusion 2027, estate tax exemption and Form 709. The instructions also mention a tax under section 2801:
“Section 2801 imposes a tax on U.S. citizens and residents who receive gifts or bequests from covered expatriates.”
Due date
“In general, a U.S person’s Form 3520 is due on the 15th day of the 4th month following the end of such person’s tax year for income tax purposes. For a calendar-year individual, this is generally the same day as the filer’s income tax return due date. If a U.S. person is granted an extension of time to file an income tax return, Form 3520 is due no later than the 15th day of the 10th month following the end of the U.S. person’s tax year. Note: This may differ from and is not tied to the due date of the U.S. person’s income tax return.”
“If you are an individual who is a U.S. citizen or resident who satisfies one of the following conditions on the due date of your income tax return, then the due date for filing Form 3520 is extended from the 15th day of the 4th month (April 15) to the 15th day of the 6th month (June 15) following the end of your tax year. You must include a statement with Form 3520 showing that you are a U.S. citizen or resident who meets one of these conditions.
You live outside of the United States and Puerto Rico and your place of business or post of duty is outside the United States and Puerto Rico.
You are in the military or naval service on duty outside the United States and Puerto Rico.”
“If you are an individual who is a U.S. citizen or resident and are granted an extension of time to file your income tax return, the due date for filing Form 3520 is no later than the 15th day of the 10th month (October 15) following the end of your tax year.”
The Reminders section words the same rules more briefly and adds the Form 3520-A due date:
“Due dates. Form 3520 is due by the 15th day of the 4th month following the end of the taxpayer’s tax year. However, taxpayers who live and work outside the United States have until the 15th day of the 6th month to file the form. If an extension has been requested, check box 1k and include the form number of the tax return for which the extension applies. See When and Where To File, later. Form 3520-A is due by the 15th day of the 3rd month after the end of the foreign trust’s tax year. However, a substitute Form 3520-A attached to a U.S. owner’s Form 3520 is due the same day as Form 3520.”
The income tax return’s own due dates are on the tax deadline 2027 and tax extension deadline 2027 pages; the instructions say the Form 3520 date may differ from and is not tied to the return’s due date.
Form 3520 or Form 3520-A
The instructions treat Form 3520 and Form 3520-A as two filings with different filers and due dates. Form 3520-A, Annual Information Return of Foreign Trust With a U.S. Owner, has its own instructions; the Form 3520 instructions describe how a U.S. owner can attach a substitute Form 3520-A:
“If a foreign trust fails to file Form 3520-A, the U.S. owner must complete and attach a substitute Form 3520-A to the U.S. owner’s Form 3520 by the due date of the U.S. owner’s Form 3520 (and not the due date for the Form 3520-A, which is otherwise due by the 15th day of the 3rd month after the end of the trust’s tax year) in order to avoid being subject to the penalty for the foreign trust’s failure to timely file Form 3520-A.”
Penalties
“Section 6677. A penalty applies if Form 3520 is not timely filed or if the information is incomplete or incorrect. For exceptions, see Reasonable cause, later. Generally, the initial penalty is equal to the greater of $10,000 or the following (as applicable).
35% of the gross value of any property transferred to a foreign trust for failure by a U.S. transferor to report the creation of or transfer to a foreign trust in Part I.
35% of the gross value of the distributions received from a foreign trust for failure by a U.S. person to report receipt of the distribution in Part III.
5% of the gross value of the portion of the foreign trust’s assets treated as owned by a U.S. person under the grantor trust rules (sections 671 through 679), if the foreign trust (a) fails to file a timely Form 3520-A and furnish the required annual statements to its U.S. owners and U.S. beneficiaries; or (b) does not furnish all of the information required by section 6048(b) or includes incorrect information. See section 6677(a) through (c) and the instructions for Part II of this form and Form 3520-A.”
“Additional penalties will be imposed if the noncompliance continues for more than 90 days after the IRS mails a notice of failure to comply with the required reporting. If the IRS can determine the gross reportable amount (defined later), then the penalties will be reduced as necessary to assure that the aggregate amount of such penalties does not exceed the gross reportable amount. For more information, see section 6677.”
“Section 6039F. In the case of a failure to timely report foreign gifts described in section 6039F, the IRS may determine the income tax consequences of the receipt of such gift, and a penalty equal to 5% of the amount of such foreign gifts applies for each month for which the failure to report continues (not to exceed a total of 25%). See section 6039F for additional information.”
“Reasonable cause. No penalties will be imposed if the taxpayer can demonstrate that the failure to comply was due to reasonable cause and not willful neglect.”
Exceptions and other forms
The instructions list transactions for which Form 3520 does not have to be filed. The quote below is a partial list; the instructions’ list is longer.
“Form 3520 does not have to be filed to report the following transactions.
[…]
Transfers to foreign trusts that have a current determination letter from the IRS recognizing their status as exempt from income taxation under section 501(c)(3).
[…]
Transfers to, ownership of, and distributions from a Canadian registered retirement savings plan (RRSP), a Canadian registered retirement income fund (RRIF), or any other Canadian retirement plan that is within the meaning of section 3 of Rev. Proc. 2014-55.
[…]”
Reporting foreign accounts and assets uses other forms, which the instructions mention. See Form 8938 for that form’s thresholds.
“You may be required to file Financial Crimes Enforcement Network (FinCEN) Form 114, Report of Foreign Bank and Financial Accounts (FBAR). In addition, you may be required to file Form 8938, Statement of Specified Foreign Financial Assets.”
Frequently asked questions
Who must file Form 3520?
The instructions (Rev. December 2025) say to file Form 3520 if any one or more of four things apply: the person is the responsible party for a reportable event or transferred property to a related foreign trust in exchange for an obligation; is treated as the owner of any part of a foreign trust under sections 671 through 679; received a distribution from a foreign trust (or a loan or uncompensated use of trust property, or the trust holds a qualified obligation); or received more than the stated gift amounts from foreign persons. Each item has its own definitions in the instructions, and a separate “Exceptions To Filing” section lists transactions for which Form 3520 does not have to be filed.
What is the Form 3520 foreign gift threshold?
Item 4 of “Who Must File” covers a U.S. person who received more than $100,000 from a nonresident alien individual or a foreign estate (including foreign persons related to them) that the person treated as gifts or bequests. The instructions say to aggregate gifts from different nonresident aliens and foreign estates if the person knows, or has reason to know, that they are related to each other or that one is acting as a nominee or intermediary for the other.
What is the threshold for gifts from foreign corporations or partnerships?
The instructions say more than the section 6039F threshold amount and point to the inflation adjustment Rev. Proc. for the amount. Rev. Proc. 2025-32 states $20,573 for taxable years beginning in 2026, and Rev. Proc. 2024-40 states $20,116 for taxable years beginning in 2025.
When is Form 3520 due?
The instructions say Form 3520 is generally due on the 15th day of the 4th month following the end of the person’s tax year, and for a calendar-year individual this is generally the same day as the income tax return due date. If an extension of time to file the income tax return is granted, they say Form 3520 is due no later than the 15th day of the 10th month. They give the 15th day of the 6th month (June 15) for certain individuals living outside the United States and Puerto Rico or in military service abroad, with a statement attached.
What is the difference between Form 3520 and Form 3520-A?
Form 3520 is filed by U.S. persons to report transactions with foreign trusts, ownership of foreign trusts and receipt of certain large foreign gifts or bequests. Form 3520-A, Annual Information Return of Foreign Trust With a U.S. Owner, has its own instructions and, according to the Form 3520 instructions, is due by the 15th day of the 3rd month after the end of the foreign trust’s tax year. A U.S. owner may need to attach a substitute Form 3520-A to the owner’s Form 3520, which is due the same day as Form 3520.
What are the penalties for not filing Form 3520?
The instructions say a penalty applies under section 6677 if Form 3520 is not timely filed or the information is incomplete or incorrect, generally an initial penalty equal to the greater of $10,000 or a percentage of the gross value involved (35% or 5% depending on the case). Additional penalties apply if the noncompliance continues for more than 90 days after the IRS mails a notice of failure to comply, and the instructions say they are reduced as necessary so that the total does not exceed the gross reportable amount when the IRS can determine that amount. For foreign gifts under section 6039F they give a penalty equal to 5% of the amount of the foreign gifts for each month the failure continues, not to exceed a total of 25%. They provide for no penalty if the failure was due to reasonable cause and not willful neglect.
Do tuition and medical payments count as gifts on Form 3520?
The instructions say a gift to a U.S. person does not include any amount paid for qualified tuition or medical payments made on behalf of the U.S. person.
Is Form 3520 the same as the FBAR or Form 8938?
No. The Form 3520 instructions say a person may also be required to file FinCEN Form 114 (FBAR) and may be required to file Form 8938. Those are separate forms with their own thresholds; FedRateCalc’s Form 8938 page covers Form 8938.
Related IRS form pages and tax pages
Sources (checked November 2, 2026): IRS: Instructions for Form 8938 (Rev. November 2021), PDF · FinCEN: Report Foreign Bank and Financial Accounts (FBAR) · IRS: About Form 3520 · IRS: Form 3520 (Rev. December 2023), PDF · IRS: Instructions for Form 3520 (Rev. December 2025), PDF · IRS: Rev. Proc. 2025-32 (2026 inflation adjustments), PDF · IRS: Rev. Proc. 2024-40 (2025 inflation adjustments), PDF