Form 3520 Instructions for 2026: A Plain-English Walkthrough
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What Form 3520 is, in one sentence
Form 3520 is the IRS reporting form a US person uses to tell the government about big foreign gifts, foreign inheritances, or any interaction with a foreign trust. It is not a tax return. You do not owe tax just because you file it. You file it so the IRS knows the money is not unreported foreign income.
The four parts of Form 3520
Form 3520 has four numbered parts and most filers only touch one of them. The parts are not optional — you fill in the part that applies and leave the others blank.
- Part I — Transfers by US Persons to Foreign Trusts. You set up or contributed to a foreign trust during the year.
- Part II — US Owner of a Foreign Trust. You are treated as the owner of a foreign trust under the grantor trust rules (IRC §§ 671–679).
- Part III — Distributions from Foreign Trusts. You received a distribution from a foreign trust, even if you are not the owner.
- Part IV — US Person Who Received a Foreign Gift or Bequest. The big one for most people. You received more than $100,000 from a foreign individual or estate (or $17,339 in 2024 from a foreign corporation or partnership).
If you are reading this because you got an inheritance from a foreign grandparent or a wedding gift from a foreign relative, you almost certainly want Part IV only.
Page 1 — the filer header
Page 1 collects who you are and which boxes apply. Name as it appears on your most recent tax return. Address. Social Security Number (US persons) or ITIN (resident aliens without an SSN). Filing status. Check the box for the part of the form you are filling in.
The instructions specifically say to use the same name you used on your most recent Form 1040. If you changed your name (marriage, divorce) and have not yet updated with the Social Security Administration, file under your old name.
Pages 2–5 — Parts I, II, III (the trust pages)
Skip these unless your situation involves a foreign trust. If you put your inheritance in a US bank account, you do not have a foreign trust.
Page 6 — Part IV (gifts and bequests)
This is where most filers spend all their time. Two tables.
Line 54 — gifts of more than $100,000 from a nonresident alien individual or a foreign estate. One row per donor. Columns: date of gift, description of property, fair market value in USD.
Line 55 — gifts of more than $17,339 (the 2024 number, adjusted for inflation each year) from foreign corporations or foreign partnerships. Same columns plus a column for the donor's name and address.
A "gift" for this purpose is anything you got for free or for less than fair market value — cash, securities, a house, a car, a wedding gift, an inheritance from a foreign relative. Loans you actually have to pay back are not gifts.
What to attach
Form 3520 is paper-filed only. There is no e-file path. You print, sign in pen, and mail to:
Internal Revenue Service Center P.O. Box 409101 Ogden, UT 84409
Mail certified, with return receipt. Keep your USPS green card — that is your legal proof of timely filing. The IRS does not send acceptance letters for Form 3520.
Common landmines
- Currency conversion at the wrong rate. Use the historical USD exchange rate on the date you received the gift, not today's rate, not the rate on December 31. The IRS uses the Treasury yearly average or the spot rate from a reputable source. We pull from OpenExchangeRates and lock it on your filing.
- Aggregating multiple gifts from related donors. If your grandmother gave you $60,000 and her husband gave you $50,000, those count as one $110,000 gift because they are related parties — and you cross the threshold.
- Forgetting to also file FBAR or Form 8938. Form 3520 only reports the receipt of the gift. If the gift went into a foreign bank account and the balance crosses $10,000 during the year, you also need an FBAR. If you keep more than $50,000 (single) / $100,000 (joint) in foreign financial assets at year-end, you also need Form 8938.
When to file
Form 3520 is due by the same date as your Form 1040 — April 15 of the year after the gift, or October 15 if you filed for an extension via Form 4868. Late Form 3520 penalties are calculated monthly, capped at 25% of the gift amount, so timing matters.
3520file is software, not a CPA firm or law firm. We prepare IRS Form 3520 based on the facts you provide. For advice on your specific situation, talk to a tax attorney or CPA. The above is plain-English explanation, not tax advice.