Foreign Gift FBAR Requirements

Foreign Gift FBAR Requirements

Foreign Gift FBAR Requirements

Foreign Gift FBAR Requirements: When a U.S. person receives a gift from a foreign resident (non-U.S. person) there is a potential IRS reporting requirement. While not all foreign gifts have to be reported to the U.S. government, if the gift is an account, and the account meets the threshold reporting requirement for FBAR — then the U.S. person will have to file the FBAR to report the foreign gift accounts. If the FBAR forms are not filed, then the person may be subject to offshore penalties — although these penalties may be avoided by using FBAR Amnesty.

Examples of Foreign Gift FBAR Requirements for Reporting

There are various instances in which a foreign gift may have to be reported on the FBAR.

 Here are two common examples of foreign gift FBAR requirements for reporting:

Foreign Gift & FBAR

David is a Legal Permanent Resident in the United States.  His parents reside outside of the United States and want to help David out with personal finances while he begins his first job in the U.S.

David’s parents opened a foreign account for David in their foreign country under David’s name and deposit the gift money into Davids account.

In the first year, the gift money is $250,000 that went into the foreign account.

Therefore, David will have a form 3520 requirement due to the size of the gift, and both an FBAR and FATCA requirement to report his foreign accounts.

Foreign Inheritance & FBAR

Michelle is a Dual-Citizen.

Her grandmother is a foreign national who lives outside of the United States and recently passed away.

Michelle’s grandmother placed one of her investment accounts under Michelle’s name a few months before she passed away.

The account value is $600,000. Since the account was placed under Michelle’s name, she will file the FBAR and Form 3520 as well.

Our FBAR Lawyers Represent Clients Worldwide

Our FBAR Lawyer team specializes exclusively in international tax, and specifically IRS offshore disclosure and Foreign Gift & FBAR Amnesty.

Contact our firm today for assistance with getting compliant.


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