jmail7[at]andrewmitchel.com wrote in
news:98bbd8d0-b823-457c-b048-5852c9b63181[at]l14g2000yqj.googlegroups.com:

- quote -


As mentioned this was an inheritance from Dad, in 2002, and I have to
check up on the amounts involved.
--
Best regards
Han
email address is invalid

--
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On Nov 19, 6:12*pm, Han <nob...[at]nospam.not> wrote:
- quote -

I know of no specific rule that keeps the statute of limitations open
for failure to report the receipt of the foreign bequest (like the
specific rules keeping the statute open for failure to file Form 5471
and other portions of Form 3520 -- Code § 6501(c)(8)). However, in
general when a separate tax return needs to be filed and is not filed,
the statute of limitations does not begin to run. The reporting
requirement and the potential penalties were enacted for gifts &
bequests received after August 20, 1996. Thus, if you received the
bequest after this date, you may want to file a late 3520 with an
explanation. The IRS tends to be lenient in these circumstances
(although I hear that they may be getting stricter on Form 5471
penalties).

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

On Nov 19, 3:12 pm, Han <nob...[at]nospam.not> wrote:

- quote -

They probably won't go easy on you if you plead ignorance. But they
do have amnesty programs from time to time.

See for example

http://www.irs.gov/pub/irs-drop/rp-03-11.pdf

but that one ended on April 15, 2003.

The million dollar question -- is there am amnesty program in effect
now?

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

jmail7[at]andrewmitchel.com wrote in news:877abcab-4f3f-4883-a77b-
e78fb505550d[at]n33g2000pri.googlegroups.com:

- quote -

That's good information. I'm not sure off-hand whether I should have filed
3520 or not (have to go back into the records). If I have had to, I hope
that the statute of limitations has run out. Or could I still file,
claiming that I didn't know?

--
Best regards
Han
email address is invalid

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

- quote -

Yes, Form 3520 must be filed for inheritances as well. The
instructions to Form 3520 provide in part:

"File Form 3520 if . . . [y]ou are a U.S. person who, during the
current tax year, received . . . [m]ore than $100,000 from a
nonresident alien individual or a foreign estate . . . that you
treated as gifts or bequests"

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

On Nov 17, 6:41 pm, Han <nob...[at]nospam.not> wrote:

- quote -

Does one have to report the inheritance on form 3520? Form 3520 is to
report gifts from foreign citizens in excess of a certain threshold
(presently 100k from an individual and 13+k from a corporation), and
is due 90 days after the receipt of each gift, and the penalties for
not filing are steep, though there is no tax due. I don't know if you
need to file this form for an inheritance, but why not just to avoid
the steep penalty because an inheritance is basically a gift.

http://www.irs.gov/pub/irs-pdf/f3520.pdf
http://www.irs.gov/pub/irs-pdf/i3520.pdf


- quote -

It is form TD F 90-22.1 and is due June 30 at the Treasury Department.

http://www.irs.gov/pub/irs-pdf/f90221.pdf

However, this form is to report foreign accounts. So if all of the
foreign person's assets are converted to US dollars and sent here,
there are no foreign accounts and nothing to report.

If you receive foreign real property, this form does not apply, but I
suppose you should put it on form 3520.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"W" <persistentone[at]spamarrest.com> wrote in
news:nNKdnbVDhP-TkbzUnZ2dnUVZ_oninZ2d[at]giganews.com:

- quote -

1. record the date that the property becomes that of the US citizen and
determine its value in either the foreign currency or US currency. If
only value in foreign currency is known, the exchange rate for US$ needs
to be known as of the date of the inheritance (usually the date of
death).

2. If total value in US is equal to or greater than $10,000.00, you have
to file a form where the account is etc. I forget the form number. I
believe the date for filing this form is June 1. Check the IRS site.

Sorry for incomplete information ...


--
Best regards
Han
email address is invalid

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Several questions regarding gift taxes from a foreign citizen to a US
citizen:

1) If a US citizen has a foreign relative who dies and leaves that US
citizen some money, is it correct that there is no estate tax or gift tax
(or any tax) paid by the receiver on that inheritance? It looks to me
like US Gift Tax laws all penalize the giver, and if the giver is a person
outside the US then the gift tax laws of the US do not come into play.

2) If the foreign citizen has their money in an offshore trust, and the
inheritance is coming from that trust, does this change the situation, and
would the US citizen still not owe tax on the inherited amounts?

3) How does the US citizen properly disclose this inheritance to the IRS?

--
Will

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >