A New Focus On Foreign Inheritance And Gifts

International sources of income, such as inheritance from trusts and gifts, are not closely scrutinized historically, but that’s no longer the case. The IRS’s new emphasis on these types of income represents a more significant shift for the agency and a greater obstacle for you. If you’re facing an audit, you deserve representation you can trust.

At Bomar Law Firm, we help people in Atlanta deal with audit issues of all sizes. Our tax attorneys have the experience and understanding of tax law in Georgia and are federally to act quickly on your behalf. They can explain the risks you face in an audit and represent you in every meeting.

Penalties For Incomplete Form 3520

For people who need to file any foreign income, Form 3520 on your tax return is where you report on foreign trusts and gifts. This information goes into the calculation of your tax obligations. Incompletions on this form will lead to penalties of at least $10,000. In fact, depending on the nature and size of the income you did not report, you could pay a penalty of 35% of the gross amount of any property you received from a foreign trust.

However, there are thresholds for whether or not you need to file Form 3520. If you receive a gift from an individual or a single estate over $100,000, you must file. If you received a gift from a foreign corporation, the threshold is much lower and shifts from year to year.

We Advocate For You

Our tax attorneys work diligently, reviewing all available information and working as the front line in any and all communication with the IRS. Our lawyers represent your side and advocate for an outcome that works for you.

Reach out to our office to find out how we can take on your tax problems. Call 800-765-2779 or send an email using this online form.