Completing Form 3520, Part IV for Large Foreign Gifts | CPE Course

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Course Details

Course Information

smart_display Format
On-Demand
signal_cellular_alt Difficulty Level
Intermediate
work Practice Area
Tax Preparer

Date & Time

event Date
Thursday, February 1, 2024
schedule Time
1:00 p.m. ET./10:00 a.m. PT
timer Program Length
110 minutes

Credit Information

BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.
BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

$197.00

CPE

ALL

This webinar will analyze the reporting requirements for large foreign gifts on Form 3520, Part IV. Our esteemed international tax panelist will discuss who is required to file, avoiding penalties for non and incomplete filings, and provide examples, including the completion of Part IV, U.S. Recipients of Gifts or Bequests Received During the Current Tax Year From Foreign Persons, of Form 3520.

Faculty

Mishkin Santa

Principal, Director of International Tax

The Wolf Group, PC

Mr. Santa focuses his practice on repatriation tax, as well as individual income tax compliance, estate, gift & trust tax compliance, FBAR Assistance, foreign trust tax compliance, exit tax planning, EB-5 investor program, international assignment structuring and planning, offshore voluntary disclosure programs, foreign corporation (Subpart F, Transfer Pricing, E&P Studies), and asset protection planning. His client base includes U.S. citizens living overseas, U.S. nonresidents, EB-5 investors, U.S. domestic individuals and families, international businesses, international based families with investments in multiple jurisdictions and tax residency in multiple jurisdictions, U.S. citizens or residents who are beneficiaries of foreign trusts and who will receive gifts or inheritances from non-US persons, and trustees of trusts with U.S. grantors or U.S. beneficiaries.

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Description

The IRS instructions for preparation of Form 3520, Part IV, opens with, "Note. If you fail to timely report foreign gifts that should be reported under section 6039F, the IRS may determine the income tax consequences of the receipt [emphasis added] of such gift and penalties may be imposed." Then, more congenially adds, "A gift to a U.S. person does not include any amount paid for qualified tuition or medical payments made on behalf of the U.S. person."

For a no-tax-due form, the penalties for non-filing are stiff. Not complying with Section 6039F reporting requirements can evoke penalties of five percent of the amount of the gift monthly up to a total of 25 percent. Determining what gifts are reportable, who is subject to gift reporting, and completing and submitting Form 3520 is not readily apparent. The filing threshold includes an aggregate reporting test requiring giftees to accumulate certain gifts received throughout the year. This threshold varies depending on whether the gift was received from a foreign individual or estate or a foreign corporation or partnership. Nonresident aliens and even minors can have a reporting obligation.

Recipients, international income tax practitioners, and trust and estate advisers all need to understand the reporting obligations for U.S. Recipients of Gifts or Bequests Received From Foreign Persons. Listen as our foreign international tax reporting expert explains the nuances of reporting gifts on Form 3520, Part IV.

Outline

Introduction and background
Reporting requirements
1. U.S. persons defined
2. Reporting thresholds
3. Aggregate reporting test
Due dates and extensions
Exceptions
Flight of capital and capital control rules
Completing the form
Handling late and missed filings
Additional reporting requirements
Other considerations

Benefits

The panelist will cover these and other critical issues:

Properly completing and submitting Form 3520, Part IV for Large Foreign Gifts or Bequests
Handling missed and late filings of Form 3520
Understanding who must file, including often overlooked giftees who are subject to Section 6039F reporting requirements
Other probable U.S. and foreign filing obligations for large foreign gifts received
Applying the aggregate reporting test to foreign gifts received

NASBA Details

Learning Objectives

After completing this course, you will be able to:

Identify uncommon recipients subject to reporting requirements of IRC Section 6039F
Determine penalties that can be assessed for late or non-filing of Form 3520
Decide how to apply the aggregate reporting test to foreign gifts received
Ascertain differences in filing requirements for individuals and foreign corporations

Field of Study: Taxes
Level of Knowledge: Intermediate
Advance Preparation: None
Teaching Method: Seminar/Lecture
Delivery Method: Group-Internet (via computer)
Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
Prerequisite: Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of international taxation including residency determination, foreign entity classifications, application of treaty benefits, as well as GILTI, Subpart F, and the related Section 250 deductions.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.