The 2023 tax filing season is underway, and taxpayers with foreign activities need to be aware of certain international information return obligations, particularly the IRS Form 3520. This form requires U.S. persons, including citizens, green card holders, and certain residents, to report transactions with foreign trusts, gifts, and inheritances.
For those settling funds or property to a foreign trust, or receiving gifts or inheritances from foreign sources, filing Form 3520 is mandatory. Executors of estates with foreign trust involvement must also file this form on behalf of deceased U.S. individuals.
