Form 3520 Foreign Gifts: Thresholds, Deadlines and Penalties
In this guide
Quick answer: Form 3520 foreign gifts reporting applies when a US person receives more than $100,000 in gifts or bequests from a nonresident alien or foreign estate in a year. Foreign gifts are not subject to income tax, but late or missing reports can cost five percent of the gift per month, up to 25 percent. The form is due on the same day as your return, with extensions to October 15.
If your family abroad sends you a large sum, the first question is usually whether you will owe tax. Generally you will not, because the IRS says foreign gifts are not subject to income tax. The risk is the paperwork. Form 3520 is an information return, and the penalties for missing it are heavy. Everything below comes from the IRS page on gifts from foreign persons and its filing requirements for people abroad. Money you send the other way is covered in our hub on sending money home.
Who has to file Form 3520 for foreign gifts?
Any US person (other than a tax-exempt organisation described in the section 501(c) rules) who received a large gift or bequest from a foreign person completes Part IV of Form 3520. A foreign person includes a nonresident alien individual, a foreign corporation, a foreign partnership, a foreign estate, and a domestic trust treated as owned by a foreign person.
A foreign gift does not include amounts paid for qualified tuition or medical payments made on your behalf.
What are the reporting thresholds?
| Source of the gift | Report if the yearly total exceeds | Extra detail required |
|---|---|---|
| Nonresident alien or foreign estate (including related foreign persons) | $100,000 | Identify each gift over $5,000 separately |
| Foreign corporations or partnerships (and related persons) | $20,116 for 2025 and $20,573 for 2026 (adjusted yearly for inflation) | Identify each gift and the donor once the threshold is met |
You must add up gifts from related parties when testing the threshold. The IRS also warns that it may recharacterise purported gifts from foreign corporations or partnerships.
When is Form 3520 due?
| Situation | Due date |
|---|---|
| Generally | The 15th day of the fourth month after your tax year ends (April 15 for most individuals) |
| US citizen or resident living outside the US and Puerto Rico, or military on duty outside | The 15th day of the sixth month (June 15 for calendar-year filers) |
| You properly filed Form 4868 for your income tax return | Extended automatically, but not beyond the 15th day of the 10th month (October 15) |
The IRS stresses that the October 15 limit is final. A discretionary extra two months for your income tax return to December 15 does not apply to Form 3520. If you filed an extension, check Box 1k on Form 3520 and enter the form number of the income tax return, or the form can be treated as late.
File Form 3520 separately from your income tax return, to the Internal Revenue Service Center, P.O. Box 409101, Ogden, UT 84409.
What are the penalties?
If you do not file on time, or the information is incomplete or incorrect, the IRS may determine the income tax consequences of the gift. A penalty equal to five percent of the value of the gift for each month it goes unreported can also apply, capped at 25 percent, unless you have reasonable cause.
Does it matter if the donor was a former US citizen?
Yes, in one case. If the gift or bequest comes from a covered expatriate under section 877A, a transfer tax under section 2801 may apply to you. The IRS points to final regulations issued in January 2025 for details, which we do not summarise here.
Are other forms involved?
Possibly. The IRS notes you may also have to file the FBAR or Form 8938 for foreign accounts. See our guides to FBAR and Form 8938.
Common mistakes
- Assuming no tax means no form.
- Counting each relative’s gift separately instead of adding related donors together.
- Missing the October 15 limit because of a longer income tax extension.
- Forgetting Box 1k when an extension is on file.
Frequently asked questions
Do I pay tax on a gift from my parents abroad?
The IRS says foreign gifts are not subject to income tax. You may still have to report them if they exceed the threshold.
Do I report a gift below $100,000?
Not on Form 3520 if the total from the nonresident alien or foreign estate and related persons stays at or under $100,000 in the year.
Can I e-file Form 3520?
The IRS page tells you to mail it to the Ogden address. It does not describe e-filing.
Key takeaways
- Report foreign gifts above $100,000 (individuals) or the inflation-adjusted figure (corporations and partnerships).
- Form 3520 is an information return. Foreign gifts themselves are not subject to income tax.
- Penalty: 5 percent per month, up to 25 percent, without reasonable cause.
- The absolute latest due date is October 15 for calendar-year filers.
Related guides
- Expat tax for US citizens abroad
- FBAR guide
- Form 8938 and FATCA
- Remittance transfer rights in the US
- Your first 90 days in a new country
This page is general information, not legal or tax advice. Last updated: October 2026.
Sources
Internal Revenue Service: Gifts from foreign person; U.S. citizens and residents abroad, filing requirements.