Form 3520 vs FBAR in 2026: When You Need to File Both
Tax Research Desk
The 30-second difference
| Form 3520 | FBAR (FinCEN Form 114) | |
|---|---|---|
| What it reports | Receipt of foreign gifts, bequests, or trust transactions | Holding signature/control over foreign financial accounts |
| Threshold | >$100,000 from foreign individual; >$17,339 from foreign entity | Aggregate $10,000 in foreign accounts at any time during the year |
| When filed | With or after your Form 1040 (April 15, October 15 with extension) | Independently to FinCEN by April 15 (October 15 automatic extension) |
| Where filed | IRS Ogden Service Center (paper) | BSA E-Filing System (electronic) |
| Penalty (non-willful) | Up to 25% of the gift amount | $16,536 per account, per year (2024 number) |
These are completely independent forms. Filing one does not satisfy the other. Most foreign-gift recipients need to think about both.
When you need both
The pattern that triggers both forms:
- You received a large foreign gift or inheritance (>$100,000) → Form 3520 required.
- You parked that money in a foreign bank account before moving it to the US → FBAR required for the year you held the foreign account, if balance > $10,000.
This is extremely common with foreign inheritances. Money sits in the foreign country for weeks or months while you arrange a wire to the US — and during that period the balance triggers FBAR.
A worked example
Lucas, a US person in New York, inherits €500,000 (~$540,000) from his Swiss grandmother in June 2025. The money goes into a Swiss bank account in his name while he sets up a US wire. The Swiss balance sits at $540,000 from June through August. In September the money wires to his US account.
Lucas's filings for tax year 2025:
- Form 3520 Part IV — reports the $540,000 bequest from the Swiss grandmother. Due April 15, 2026 (October 15 with extension). Mailed to IRS Ogden.
- FBAR (FinCEN 114) — reports the Swiss account that held >$10,000 during 2025. Due April 15, 2026 (automatic extension to October 15). Filed electronically at BSA E-Filing.
- Form 8938 — possibly required, depending on whether Lucas's foreign-financial-asset balance at year-end exceeds his filing-status threshold ($50,000 single / $100,000 joint at year-end, higher for filers abroad). If the Swiss account was already closed by December 31 and his foreign-asset balance at year-end was zero, Form 8938 does not apply.
When you need only Form 3520
If the foreign gift came directly to your US bank account (e.g., your foreign aunt wired $200,000 straight to your Chase account in New York), there was no foreign account in your name to report on FBAR. Form 3520 yes, FBAR no.
Some recipients receive the gift via Western Union or a money-transfer service rather than into a foreign account in their name — same result, no FBAR.
When you need only FBAR
If you held a foreign account during the year (e.g., you live abroad part of the year and maintain a foreign bank account, or you inherited an account decades ago) but received no large foreign gift during the year, you need FBAR but not Form 3520.
This is the typical case for US persons who maintain foreign accounts as part of normal life — expats, dual citizens, students studying abroad with foreign accounts.
Why people miss FBAR
FBAR is not filed with the tax return. It is filed separately at the FinCEN BSA E-Filing System. Most filers assume that if they handled "the taxes" they handled FBAR — but FBAR is a separate filing under the Bank Secrecy Act, not an IRS form.
The penalty for missing FBAR is harsh: $16,536 per account, per year (2024 number) for non-willful violations; willful violations can reach $165,353 per account per year and criminal prosecution. The penalty per account compounds quickly across multiple accounts and multiple years.
How our app handles the FBAR question
Our cross-form check explicitly asks: "Did the foreign gift go into a foreign bank account in your name? If yes, what was the maximum balance during the year?" If your answer suggests FBAR is required, we flag it and link you to fbarfile.com (same team, $29) — a sibling product that files FBAR. We do not file FBAR ourselves.
You can file FBAR free at BSA.efiling.fincen.treas.gov. We charge $29 for the same filing because it takes more than an hour by hand and gets mostly self-served wrong.
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.