Foreign Gift
Foreign gifts to a U.S. person must be reported on Form 3520 if they exceed the reporting threshold.
If the value of the aggregate “foreign gifts” (described below) received by a U.S. person (other than an exempt organization) exceeds specified amounts, the U.S. person must report each foreign gift to the IRS. (Sec. 6039F) These amounts are:
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More than $100,000 (not subject to inflation-adjustment) from a non-resident alien individual or a foreign estate (including foreign persons related to that non-resident alien individual or foreign estate) that are treated as gifts or bequests (Notice 97-34); or
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More than $17,339 in 2022 ($16,815 in 2021, $16,649 in 2020) (Rev Procs 2021-45, 2020-45, and 2019-44) from foreign corporations or foreign partnerships (including foreign persons related to such foreign corporations or foreign partnerships) that are treated as gifts. The threshold amount for gifts from foreign corporations or partnerships is adjusted annually for inflation.
CAUTION
Verify whether or not the gift funds were in a foreign bank in your client’s name before the transfer; if they were, that would also trigger an FBAR and/or Form 8938 reporting requirement.