When do I need to file Form 3520 for a large foreign gift or inheritance?

Form 3520 reports large gifts or inheritances you received from non-U.S. persons — it's informational, and receiving the money is usually not taxable to you. For gifts or bequests from a foreign individual or estate, the reporting threshold is more than $100,000 in a year (aggregate from related givers). For gifts from foreign corporations or partnerships, the threshold is far lower — around $19,570 for 2025 and indexed annually. So an inheritance of $300,000 from a relative in India triggers Form 3520 even though you owe no U.S. income tax on it. The form is due with your tax return (including extensions) and is filed separately by mail. The penalty for missing it can be a percentage of the gift, so it matters. Keep documentation of the source and date. If a large transfer is coming from family abroad, flag it before tax season.