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PREPARATION GUIDE / UNITED STATES

Foreign gifts and Form 3520: records to identify

Describe the source, ownership and nature of a foreign transfer rather than relying only on its bank label. The review should distinguish gifts, inheritances, loans and trust-related arrangements before deciding what reporting is needed.

Preparation resource. Editorial review: November 3, 2026. This guide helps organize records and questions; it does not determine your tax position. Use the agency instructions for the relevant year and obtain advice for your circumstances.

Records to organize

Prepare the records that relate to your situation and keep the original supporting statements. Use the same filing year or clearly labelled periods so the reviewer can follow the history.

  • Transfer dates and values
  • Donor or estate relationship and residency information
  • Gift, inheritance, loan or trust documents

How to use these records

Identify the donor, recipient, relationship, amount and transfer dates, and keep trust arrangements separate from outright gifts. Information reporting and income taxation are distinct questions. A transfer reference saying gift is not proof of either the underlying facts or the reporting result.

The question to resolve before filing

What was the transfer legally and economically, and which reporting rules apply?

Start with the facts you can support. Identify missing statements, corrections and earlier filings instead of filling a gap with an estimate that has not been discussed. Tell the team which countries, tax years and agencies are involved so the engagement can cover the right work.

A mistake to avoid

Do not assume a transfer is a gift solely because it was described that way in a payment reference.

A clear handoff to your preparer

  1. Label the evidence. Keep each record with its relevant year, account or activity.
  2. List open questions. Share missing information and anything that differs from the prior return.
  3. Confirm the scope. Ask which returns, disclosures and follow-up work are included before preparation begins.

Do not enter identity numbers, account numbers, verification codes or tax-document copies in a public enquiry. Use your private client portal for requested records after onboarding.

Official starting points

Use the current agency guidance and the instructions for the applicable filing year. A source link is not confirmation that a particular rule, election or claim applies to your circumstances.

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