Form 3520 guide for foreign trusts, gifts, and inheritances

Form 3520 is an IRS information return used by US persons and certain estate executors to report specified foreign trust transactions, foreign trust ownership, and large gifts or bequests from foreign persons. For 2025 activity, filing errors can trigger penalties reaching 35% of a trust transfer or distribution, or 25% of an unreported foreign gift.

The current official Form 3520 filing instructions govern 2025 tax-year filings and subsequent years until the IRS issues a superseding revision.

US citizens and resident aliens abroad generally remain subject to US federal filing rules. Our US expat tax guide explains how those rules fit with the broader federal return.

2025 Form 3520 quick summary
The following 3 points summarize the filing rules:

• Foreign gifts and inheritances: Part IV applies when a US person receives more than $100,000 from a nonresident alien individual or foreign estate, including related persons that must be aggregated, or more than $20,116 from foreign corporations or partnerships.
• Foreign trust transactions: Parts I–III can apply to transfers to a foreign trust, US ownership of a foreign trust, distributions, certain loans, and uncompensated use of trust property.
• Filing deadline: For calendar-year 2025 filers, the usual deadline was April 15, 2026; qualifying US citizens and residents abroad had until June 15, 2026, and a valid income tax return extension can extend Form 3520 to October 15, 2026.

A Form 3520 foreign gift is not the same as every overseas bank transfer. If your mother in France gives you $125,000, Part IV can apply; moving $125,000 between two accounts you own is not a gift, although Form 8938 reporting or FBAR rules may still apply to the foreign account.

What is IRS Form 3520

IRS Form 3520 is a standalone information return, not an income tax return, and it does not calculate tax. For 2025, a US person may use it to report 1 or more foreign trust events, ownership under sections 671–679, trust distributions, or large foreign gifts and bequests.

A foreign trust is any trust that does not meet both US domestic-trust tests: a US court must be able to exercise primary supervision over its administration, and one or more US persons must control all substantial decisions. A trust that fails either test is foreign for US federal tax purposes.

What Form 3520 reports

The following 4 categories cover the main reporting functions of the IRS 3520 return:

• Transfers or other reportable events involving a foreign trust.
• US ownership of any portion of a foreign trust under sections 671–679.
• Direct or indirect distributions from a foreign trust, including certain loans and uncompensated use of trust property.
• Large foreign gifts or bequests that exceed the Part IV reporting thresholds.

The Tax Form 3520 filing is separate from Form 1040. A US person can owe no US income tax on a receipt and still have an information-reporting duty.

Information return: Form 3520 reports specified cross-border information; it is not an income tax return and does not calculate income tax.

Should Form 3520 be attached to Form 1040?

No. Form 3520 is filed separately from Form 1040, even though an extension of the income tax return can also extend the information return’s due date. For a separate overview of how a foreign inheritance is treated, see our foreign inheritance tax guide.

What is the F3520 Form?

There is no separate form under that name. The IRS PDF filename is f3520.pdf; the official return is IRS Tax Form 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts.

Not the same as Form 3520-A, FBAR, or FATCA

Form 3520-A is the annual information return for a foreign trust with at least 1 US owner, while Form 3520 is filed by the US person or executor who has the reportable event, ownership, distribution, gift, or bequest. FBAR and Form 8938 are separate foreign-account and foreign-asset regimes; see our FBAR vs. Form 8938 comparison.

Form 3520 filing triggers at a glance

For 2025, Form 3520 can be triggered by 5 categories: a foreign gift, a foreign inheritance or bequest, a foreign trust distribution, US ownership of a foreign trust, or a transfer to a foreign trust. Cross-border payments do not become reportable solely because money crosses a border.

A transfer must fit a reporting category; an ordinary international wire by itself is not a Form 3520 trigger.

 

A foreign pension, retirement arrangement, or savings plan is not automatically a reportable trust. The IRS’s foreign trust reporting requirements describe relief for Canadian RRSPs/RRIFs, certain arrangements under Rev. Proc. 2020-17, and certain tax-favored trusts covered by proposed section 6048 regulations. Our guide to what counts as a foreign trust explains the classification step.

Who must file Form 3520?

The Form 3520 filing requirements start with 1 question: are you a US person for tax purposes? If yes, check 4 triggers – a foreign trust event or transfer, foreign trust ownership, a trust distribution or deemed distribution, and a foreign gift or bequest above the applicable 2025 threshold.

A US person includes a US citizen or resident, domestic partnership, domestic corporation, estate other than a foreign estate, and domestic trust. A 3520 filing requirement arises only when that US person also meets a reportable trust, distribution, gift, or bequest trigger. If you are not a US person, you do not file solely because a US relative received funds from you.

Are you a US person? If yes, use these 4 trigger rows to identify which part of the form can apply.

Each of the 4 filing triggers maps to a different part of Form 3520 and should be tested separately.

 

Based on our client scenario at TFX: a US resident receives a $140,000 cash gift from a nonresident alien parent in 2025. The receipt exceeds $100,000, so Part IV is reportable even if the gift itself is excluded from gross income.

A regular transfer is different. If a foreign friend sends $18,000 to reimburse documented shared travel and housing costs, the payment is not automatically a gift; the taxpayer should keep records showing what the transfer represents.

 

Form 3520 vs Form 3520-A

Form 3520 and Form 3520-A can both apply to the same foreign trust in 2025, but they report different information. Form 3520 follows the US owner, transferor, or beneficiary, while Form 3520-A is the annual trust-level return for a foreign trust with at least 1 US owner.

A US owner can have a Form 3520 duty even when the foreign trust also has a separate Form 3520-A filing obligation.

 

The current Form 3520-A instructions explain the trust’s annual filing and statement duties.

For the filing mechanics and extension process, see our Form 3520-A guide.

Common confusion: the trust’s Form 3520-A does not replace the US owner’s Form 3520. If the foreign trust fails to file, a US owner may need a substitute Form 3520-A attached to the owner’s timely Form 3520.

TFX scenario: A US citizen owns 100% of a foreign grantor trust in 2025. The foreign trust has an annual Form 3520-A obligation, while the US owner completes Form 3520 Part II even if the trust makes no distribution.

TFX scenario: A US beneficiary who does not own the trust receives a $35,000 distribution. The beneficiary can have a Part III reporting duty even though the trust’s Form 3520-A duties depend on whether the trust has a US owner.

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Key components of Form 3520 – part by part

The December 2025 IRS Form 3520 instructions divide the return into 4 reporting parts for 2025 activity. Before filing, identify whether you are a transferor, owner, beneficiary, or gift recipient, then collect trust documents, valuation records, distribution statements, and donor information tied to the part you must complete.

Parts I–IV answer different reporting questions, so gather records for the part that matches your 2025 transaction before completing the form.

 

• Part I purpose: establish what foreign trust was created or funded, what property moved, when it moved, and the value involved.
• Part II purpose: disclose the US ownership relationship and connect the owner’s filing to the foreign trust’s annual Form 3520-A information.
• Part III purpose: identify direct and indirect value received from a foreign trust and provide the statements needed to determine the US tax treatment.
• Part IV purpose: report foreign gifts and bequests once the applicable reporting threshold is crossed, even when the receipt is not itself taxable income.

The IRS 3520 instructions identify the line-level information each filer must provide, including trust ownership, transfer, and distribution details.

Before assembling attachments, use the Form 3520 instructions PDF to confirm which owner or beneficiary statements apply to your facts. TFX’s guide to preserving tax and financial records can help organize supporting documents after filing.

The following 4 document groups cover the records most filers should keep:

• Trust instruments, amendments, trustee details, and identifying numbers.
• Transfer records showing dates, property descriptions, and fair market values.
• Foreign Grantor Trust or Foreign Nongrantor Trust Beneficiary Statements and distribution records.
• Gift, bequest, donor, estate, valuation, and ownership records supporting Parts II or IV.

Part I – Transfers to foreign trusts

Part I covers reportable events and transfers of money or property to a foreign trust by a US person. For 2025, that includes cash, real estate, securities, obligations, and indirect transfers; a transfer for fair market value can fall outside Part I unless an IRS exception applies.

A transfer can be direct, such as wiring $50,000 to the trust, or indirect, such as routing property through another person or entity when the facts cause the transfer to be treated as made to the trust. A gratuitous transfer is broader than a gift for gift-tax purposes.

For 2025, the 3 core Part I reporting points are cash or property transferred to a foreign trust, loans or obligations involving the trust, and trustee or beneficiary details tied to the transfer. A missed required Part I filing can trigger the greater of $10,000 or 35% of the gross value transferred.

Part I focuses on the substance of the transfer – not only the name on the first bank or brokerage account involved.

 

Based on our client scenario at TFX: a US person transfers $80,000 to a wholly owned foreign company, then directs the company to contribute the same $80,000 to a related family trust with no business purpose. If the facts treat the movement as an indirect transfer, the $80,000 belongs in the Part I analysis.

Transfers of appreciated property to foreign entities can also create separate tax issues. See our Section 367 foreign transfer guide when property is moving to a foreign corporation or other foreign structure alongside the trust transaction.

The following 3 records are the minimum starting point for a Part I file:

• Exact transfer date and payment or conveyance evidence.
• Fair market value and valuation support for each transferred asset.
• Foreign trust name, address, trustee, tax identifiers, and relevant trust agreement provisions.

Part II – US ownership of foreign trusts

Part II applies when a US person is treated as the owner of any portion of a foreign trust under sections 671–679. For 2025, ownership itself triggers Part II even when the trust made $0 of distributions, and the related Form 3520-A obligation must be tested separately.

A US owner is a US person treated under the grantor-trust rules as owning all or part of the trust’s assets. The ownership analysis depends on the trust terms, transfer history, powers, and beneficiary rules rather than the title used under local law.

Part II reports ownership status even when no money was paid out during 2025. If the foreign trust fails to file Form 3520-A, a timely substitute Form 3520-A attached to the owner’s return can prevent the owner-level penalty, which starts at the greater of $10,000 or 5% of the relevant trust assets.

Part II reports the US owner’s relationship to the trust; Form 3520-A reports the foreign trust’s annual information and statements.

 

The following 3 records support the ownership position:

• Trust deed, amendments, letters of wishes, and powers held by the grantor, trustee, protector, or beneficiaries.
• Grantor trust statements and prior Forms 3520/3520-A.
• Documents supporting the percentage or portion of trust assets treated as owned by each US person.

Foreign trust ownership can also overlap with separate foreign-account reporting. If that applies, review TFX’s FBAR filing service and whether an FBAR is required for accounts connected to the trust.

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Part III – Foreign trust distributions

Part III reports direct or indirect distributions from a foreign trust to a US person during 2025, including certain cash payments, property, loans, and uncompensated use of trust property. The IRS can treat indirect benefits as distributions even when the trust never transfers cash directly to the beneficiary.

A distribution includes a gratuitous transfer of money or property from a foreign trust and can include constructive transfers. Trust-paid personal credit-card charges, checks drawn on a trust account, loans of cash or marketable securities, and rent-free use of trust property can all require Part III analysis.

The following 4 steps organize a Part III filing:

1. Identify every cash, property, loan, expense payment, or property-use benefit received directly or indirectly during 2025.
2. Determine whether the amount is a reportable distribution, loan, or uncompensated use item under the instructions.
3. Obtain the applicable Foreign Grantor Trust Beneficiary Statement or Foreign Nongrantor Trust Beneficiary Statement when available.
4. Report the amount, date, documentation status, and any required tax calculation or attachment in the correct Part III lines.

Part III reporting depends on both the type of benefit and the documentation available from the foreign trust.

 

Based on our client scenario at TFX: a beneficiary receives foreign shares worth $40,000, and the trust’s beneficiary statement shows a $26,000 basis in those shares. The client keeps the statement and valuation evidence, reports the $40,000 distribution amount, and uses the trust documentation for the separate US tax treatment.

A missed required Part III filing can trigger the greater of $10,000 or 35% of the gross distribution. When the trust provides a Foreign Grantor Trust Beneficiary Statement or Foreign Nongrantor Trust Beneficiary Statement, retain it with the filing; missing required beneficiary documentation can change how a nongrantor trust distribution is computed for US tax purposes.

Part IV – Large foreign gifts received

Part IV applies when a US person receives more than $100,000 from a nonresident alien individual or foreign estate, including related persons that must be aggregated, in 2025, or more than $20,116 from foreign corporations or partnerships. Form 3520 foreign gift reporting uses source-based thresholds.

A foreign gift can be cash, property, or securities received from a foreign person and treated as a gift or bequest for US tax purposes. Qualified tuition or medical payments made directly to the institution or provider are excluded from this Part IV definition.

The Form 3520 foreign inheritance rule uses the same $100,000 threshold when the receipt is a bequest from a foreign estate, subject to aggregation rules. A Form 3520 inheritance can be reportable even when the inherited property is not included in gross income.

Foreign gift and inheritance thresholds

For tax year 2025, the key Part IV thresholds are more than $100,000 for nonresident alien individuals/foreign estates and more than $20,116 for foreign corporations/partnerships.

 

An inheritance from a foreign estate is a bequest for Part IV reporting, not an ordinary lifetime gift. Once the $100,000 threshold is crossed, related-party aggregation applies, and gifts or bequests over $5,000 must be separately identified as directed by the IRS.

For 2025, the foreign gift tax form used for this information reporting is Form 3520 Part IV; the receipt is not automatically subject to US income tax merely because it is reported. The IRS’s large gifts and bequests from foreign persons guidance confirms both 2025 thresholds.

A foreign gift reporting form issue can also arise with transfers from foreign corporations or partnerships, where the IRS may recharacterize a purported gift. Our guide to US gift tax rules explains how gift-tax concepts differ from the recipient’s Form 3520 reporting duty.

Part IV late-filing penalties are 5% of the unreported foreign gift for each month or part of a month, capped at 25%, unless reasonable cause applies. Report fair market value as required and keep valuation, bank, brokerage, gift, and estate records; do not mail extra appraisals or statements unless the instructions require them.

2025 covered-expatriate update: The IRS’s Section 2801 update confirms that final regulations apply to covered gifts and covered bequests received on or after January 1, 2025. A US citizen or resident receiving a covered gift or bequest from a covered expatriate may also need Form 708, which is separate from Form 3520.

Based on our client scenario at TFX: a US citizen receives $75,000 from a nonresident alien mother and $40,000 from a nonresident alien father during 2025. Because the donors are related, the $115,000 total exceeds $100,000 and triggers Part IV reporting.

 

 

The following 3 checks make Part IV easier to document:

• Who reports: the US recipient who crosses the applicable threshold.
• What counts: gifts or bequests from foreign persons, with source-specific thresholds and related-party aggregation; foreign trust distributions belong in Part III instead.
• What to retain: donor or estate identity, relationship, transfer date, description, fair market value, bank/brokerage records, estate papers, and valuation support.

If you need to submit the return and want support, get help filing Form 3520.

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When and where to file Form 3520

For 2025 calendar-year taxpayers, Form 3520 was due April 15, 2026, or June 15, 2026, for qualifying US citizens and residents abroad; an income tax return extension can move the deadline to October 15, 2026. IRS instructions direct filers to mail the return to Ogden, Utah.

For 2025 calendar-year filings, October 15, 2026 is the latest Form 3520 deadline available through a normal income-tax-return extension.

 

If you need extra time, TFX’s guide to filing a US tax extension from abroad explains the income-tax extension process. A discretionary extension of Form 1040 to December 15 does not extend Form 3520 past October 15 for a calendar-year filer.

Form 3520 e file – can the 2025 return be submitted electronically?

No electronic filing route is listed as of August 10, 2026. The current IRS instructions direct filers to send the return to the Ogden service center, and the IRS’s March 9, 2026 where-to-file page lists a mailing address. This conclusion is based on the current IRS submission instructions and where-to-file page.

E-signatures are accepted on Form 3520, but an accepted electronic signature does not create an e-filing channel. Form 3520 electronic filing is not listed as a current IRS submission method. If you submit the 2025 return, use the mailing instructions unless the IRS publishes superseding guidance after the date of this update.

The official IRS 3520 PDF is available from IRS.gov and should be checked against the current filing instructions before preparation.

Use the December 2025 Form 3520 instructions for tax year 2025 and subsequent years until the IRS issues a superseding revision.

Is Form 3520 2024 still the right version for a 2025 filing?

Do not use 2024 guidance to set 2025 thresholds or filing directions. Compare any older copy with the current Form 3520 PDF, while the December 2025 instructions explicitly apply to tax year 2025 and subsequent years until a superseding revision is issued.

A saved 3520 Form 2024 copy should be checked against the current IRS form page rather than rejected solely because of its saved filename or revision date. The 2025 instructions added Section 2801 guidance for covered gifts and bequests from covered expatriates.

Where to mail Form 3520

Mail the signed, complete return to:

Internal Revenue Service Center
P.O. Box 409101
Ogden, UT 84409

The IRS mailing-address page for Form 3520 was last reviewed March 9, 2026.

TFX also maintains a broader guide to IRS mailing addresses for expats.

How to amend Form 3520

If a previously filed return is wrong or incomplete, prepare a corrected return and check the “Amended return” box in Item A. Mail the complete amended return to the same Ogden address; the current instructions no longer tell filers to write “AMENDED” across the top of page 1.

The following 4 package checks should be completed before mailing:

• Use the current form and instructions for the 2025 tax year.
• Sign the return and include every statement or substitute Form 3520-A attachment required by the part you are filing.
• If an income tax return extension applies, complete box 1k with the associated return form number.
• Keep a complete copy and dated proof of mailing or delivery.

 

Consequences of non-compliance

Form 3520 penalties depend on the reporting category, so there is no single $10,000 rule. For 2025, trust-transfer and distribution failures can trigger the greater of $10,000 or 35% of the amount, while Part IV gift penalties run at 5% per month, capped at 25%.

The penalty formula changes by part: 35% applies to certain trust transfers/distributions, 5% of trust assets can apply to owner-level Form 3520-A failures, and foreign gifts use a 5%-per-month rule capped at 25%.

 

The IRS’s international information reporting penalties page sets out the current Part I–IV formulas. The 3520 instructions also state that reasonable cause can prevent the Section 6677 or Section 6039F penalty when the failure was due to reasonable cause and not willful neglect.

A late Form 3520 can affect more than the immediate penalty. An incomplete or late Parts I–III filing can keep the assessment period open until 3 years after the required information is finally provided, subject to Section 6501(c)(8).

If you missed a return, the following 4 actions should come before filing a rushed correction:

• Gather trust instruments, transfer/distribution records, donor or estate records, valuations, and prior filings.
• Identify the exact missing part and tax year, then compare the facts with the current IRS instructions.
• Document the facts supporting reasonable cause, including dates and steps taken after learning of the obligation.
• File the required delinquent information return using the applicable IRS procedure and keep proof of submission.

The IRS’s delinquent international information return procedures say that reasonable-cause statements attached to delinquent Forms 3520 or 3520-A should have “Reasonable Cause Statement attached” written at the top of the first page. TFX’s reasonable cause penalty abatement guide explains what supporting facts typically need to be organized.

For the wider income-tax context, see our guide to penalties for not filing an expat tax return. Those rules are separate from the Form 3520 formulas above.

FATCA has its own disclosure and penalty regime. Our FATCA non-compliance penalties guide explains those rules separately from Form 3520.

Get expert assistance with your Form 3520 filing

For 2025 activity, a Form 3520 review should answer 3 questions before filing: which reporting part applies, which records and trust statements support the filing, and whether another international form is also required. TFX can prepare the US filing and coordinate Form 3520 with related expat tax reporting.

The following 3 service steps keep the work focused on the actual filing requirement:

• Review whether Part I, II, III, or IV applies and confirm the 2025 threshold or trust relationship.
• Prepare the return from trust documents, distribution statements, donor or estate records, ownership data, and valuations.
• Check related reporting such as Form 3520-A, FBAR, or Form 8938 so each filing is handled under its own rule.

The following 3 practical benefits come from reviewing the filings together:

• Match the 2025 transaction to the correct Part I–IV reporting rule before the return is prepared.
• Separate Form 3520 from Form 3520-A, FBAR, and Form 8938 so one disclosure is not mistaken for another.
• Build a complete filing package with the trust statements, valuations, donor records, or ownership documents required for the facts.

Professional preparation can reduce avoidable filing errors, but it does not guarantee penalty relief. If prior years are missing, our Streamlined Filing Compliance Procedures guide explains the IRS program and its eligibility rules; Form 3520 penalty questions still require a separate facts-based review.

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