Receiving a gift from abroad is a fairly common event among citizens, due to the fact that the doubt arises as to whether or not some type of lien should be cancelled. Therefore, the question arises if they send me a gift from abroad, should I pay taxes to the IRS?
In advance, to pay taxes, for gifts from a person located abroadis appropriate under certain circumstances, which we invite you to read.
Before indicating the assumption of fact before which the payment of taxes is appropriate. This only applies if the gift, the donation or gift comes from abroad, that is, out of USA.
However, in general, gifts received from abroad do not imply the payment of taxes or liens. Since these mostly do not represent a sumptuous amount nor do they imply large amounts of money to report to the Treasury.
That is why, in advance, we point out that if you receive the deposit of 100 dollars from a foreign account to your account in the USA, you should not worry about making a declaration before the federal office or filling out any form.
In itself, you must make the declaration by means of the 3520 format, when the royalty, donation or gift that you receive is valued in the amount of 10,000 dollars.
Aspects to consider about form 3520
Indeed, If you receive a car valued at this amount, you will need to fill out Form 3520 to prove its legitimacy. In the same way, you must fill out said form if it is about said amount of money that you have received in your account.
This form must be delivered to the Federal Office of your State, duly filled out, without amendments or deletions. In this case, if it is a tangible asset, you must attach photos, copies of the ownership document or invoices.
You must do the same in the event that the good on which the gift deals is intangible. With this, we indicate that you have to enjoy a good test to demonstrate both its value and that it belongs to you.
Penalties for not submitting form 3520
You should know that if the presentation of said form is not made on the deadline date, which usually coincides with the tax filing date imposed by your Federal office, you can get serious problems.
Such is the case, that you can be sanctioned by the tax collection office, as it may also be that you must deliver at the rate of the fine to the tax, 20% of the total value of the donation. This fine will be assessed by the same federal entity to proceed with the collection of the pecuniary sanction.
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