◉ Foreign Trusts & Gifts
Foreign gifts & distributions
Report large gifts from non-US persons or distributions from foreign trusts on Form 3520.
Short answer
A US person who receives more than $100,000 in gifts or inheritances from a non-US individual in a year — a UK parent, for example — must report them on Form 3520. No tax is due on the gift itself, but the penalty for not filing is 5% of the amount per month, up to 25%.
Overview
Why this filing matters
Report large gifts from non-US persons or distributions from foreign trusts on Form 3520.
Note — Gifts from non-US persons.
◉ Who this is for
- •US persons receiving gifts over the reporting threshold from foreign individuals or estates
✓ What you get
- ✓Form 3520 preparation
- ✓Late-filing penalty mitigation where applicable
At a glance
- Key forms
- 3520
- Category
- Foreign Trusts & Gifts
- Turnaround
- 2–3 weeks once documents are complete
- Filed by
- ACCA-qualified IRS Enrolled Agent
Our approach
The forms behind the gift, before the penalty.
A gift or inheritance from UK family, or an interest in a UK trust, is usually not taxable to a US recipient — but the reporting is, and Forms 3520 and 3520-A carry some of the harshest penalties in the code for being late or incomplete. The tax is often nil; the exposure is almost entirely about filing correctly and on time.
We work out exactly which reporting is triggered, prepare it to withstand scrutiny, and where a deadline has already passed we set out the reasonable-cause or relief route rather than letting the penalty run.
- Reporting triggers identified for gifts, inheritances and trust interests
- Form 3520 / 3520-A prepared to the standard the penalties demand
- Late-filing relief and reasonable-cause routes mapped where a deadline passed
Our process
How we handle your filing
Four steps from first email to filed return. Fixed fee confirmed in writing before any work begins.
01
Intake
Send us your situation by email or the enquiry form. We come back with the questions we need answered — every source of income for the year, filing history, accounts and entities — and a tailored document list.
02
Review
We analyse your position, flag any cross-border risks, and confirm the scope and fixed fee in writing before any work starts.
03
Prepare
Draft returns and schedules are prepared with plain-English commentary on key positions for your review.
04
File
You sign electronically; we e-file with the IRS / FinCEN and send you the acceptance confirmations for your records.
Pricing
Fixed fees — no surprises
Form 3520 preparation starts from £450 + VAT. Late-filing relief with reasonable-cause arguments is quoted separately after reviewing the situation.
Prices are indicative starting points and exclude UK VAT, which applies to UK-resident clients only. We quote in writing once we have confirmed every source of income and your filing history for the years involved.
FAQs
Common questions
Sources
Rules, thresholds and penalties are as published by the IRS and FinCEN at the time of our last review (2026-09-08); always check the current instructions for the year you are filing.
Related services
Others in Foreign Trusts & Gifts
Who this is for
Situations where this filing usually applies
Related reading
Guides from our team on this topic
Ready to get this filed?
Tell us your situation and we’ll reply by email within 2 working days with our questions, then a written scope, fixed fee and document list.