Do I have to report a gift or inheritance from abroad as a US resident?

Checked on 2026-10-25

Yes, above a threshold. A US person who receives gifts or bequests from a nonresident individual or foreign estate totalling more than $100,000 in a tax year must report them on Form 3520, Part IV, filed separately from the tax return by April 15. Late or missing reports can cost 5% of the gift per month, up to 25%.

Key facts

What	The rule	Source
Who reports	A US person (other than certain tax-exempt organisations) who receives a large foreign gift or bequest	26 U.S.C. 6039F(a); IRS, Gifts from foreign person
What is a foreign gift	Any amount from a person who is not a US person that you treat as a gift or bequest; not qualified tuition or medical payments made for you	26 U.S.C. 6039F(b); IRS
Threshold: individuals and estates	More than $100,000 in the tax year from a nonresident alien or foreign estate, counting related persons together; then each gift over $5,000 is listed separately	IRS, Gifts from foreign person
Threshold: foreign companies	More than $20,116 for 2025 and $20,573 for 2026 from foreign corporations or partnerships (adjusted annually)	IRS, Gifts from foreign person
Form	Form 3520, Part IV, filed separately from your income tax return	IRS, Gifts from foreign person
Due date	15th day of the 4th month after your tax year ends (generally April 15); June 15 for US citizens and residents living outside the US and Puerto Rico; extended with Form 4868, but never beyond October 15	IRS, Gifts from foreign person
Penalty	5% of the gift for each month it isn’t reported, up to 25%, unless you show reasonable cause; the IRS may also decide the tax consequences of the gift	26 U.S.C. 6039F(c); IRS

When you have to report

The IRS says you report gifts or bequests from a nonresident individual or foreign estate only if the total from that person (and anyone you know or have reason to know is related to them) exceeds $100,000 during the tax year. Once you cross that line, you identify each gift over $5,000 separately. For purported gifts from foreign corporations or partnerships, the threshold is much lower ($20,116 for 2025, $20,573 for 2026), and the IRS says it may recharacterise such gifts.

Distributions from a foreign trust are a different case: the IRS says they are reported in Part III of Form 3520.

How and when to file

Form 3520 is not part of your Form 1040. The IRS says you mail it separately to the Internal Revenue Service Center in Ogden, Utah, by the 15th day of the 4th month after your tax year ends (April 15 for a calendar year). If you live outside the US and Puerto Rico, it is due June 15. If you filed Form 4868 to extend your income tax return, Form 3520 is extended too, but not past October 15. The IRS advises checking box 1k on Form 3520 if you extended your return, so the form isn’t treated as late.

You may also have to file the FBAR and Form 8938 for foreign accounts and assets (IRS, Gifts from foreign person).

Sources

26 U.S.C. 6039F, Notice of large gifts received from foreign persons (United States Code, 2024 Edition, govinfo) checked 2026-10-25
IRS: Gifts from foreign person checked 2026-10-25

Change history

2026-10-25: Page created

This is general information, not legal advice, and Lumen is not a law firm. Rules change and offices differ: check the official sources above before you act. Found something wrong or out of date? Write to support@lumen.observer.