Foreign Inheritance (500k) and FATCA

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NYGiantsFan
Posts: 330
Joined: Fri Aug 17, 2012 7:59 am

Foreign Inheritance (500k) and FATCA

Post by NYGiantsFan »

I received inheritance from family member. Inheritance came this year (2023).
What are the steps needed to file FATCA as well as other relevant forms? I will appreciate direction.

I don't have any foreign account/assets at present except this inheritance.
Thank you
Ranunculus
Posts: 188
Joined: Wed Aug 28, 2019 1:32 pm

Re: Foreign Inheritance (500k) and FATCA

Post by Ranunculus »

It's great that you came here for information because the penalty for filing the required form late is 25% of the inheritance, with little hope of appeal.

Here is the required form: https://www.irs.gov/pub/irs-pdf/f3520.pdf

Here is an article on the harsh consequences of late filing of the form: https://www.forbes.com/sites/taxnotes/2 ... 4e61676fa6

And here is a recent thread on the topic: viewtopic.php?t=392849
Topic Author
NYGiantsFan
Posts: 330
Joined: Fri Aug 17, 2012 7:59 am

Re: Foreign Inheritance (500k) and FATCA

Post by NYGiantsFan »

Ranunculus wrote: Tue Jan 24, 2023 12:39 pm It's great that you came here for information because the penalty for filing the required form late is 25% of the inheritance, with little hope of appeal.

Here is the required form: https://www.irs.gov/pub/irs-pdf/f3520.pdf

Here is an article on the harsh consequences of late filing of the form: https://www.forbes.com/sites/taxnotes/2 ... 4e61676fa6

And here is a recent thread on the topic: viewtopic.php?t=392849
Thanks for the pointer. Focus of that topic seems gift instead of inheritance. I am trying to get understanding on FATCA/FBAR etc with regards to inheritance.
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David Jay
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Re: Foreign Inheritance (500k) and FATCA

Post by David Jay »

“Bequest” is the key here. It appears (unless the inheritance was distributed by a trust) that Part 4 is the appropriate section.

But for an inheritance of this size, I would seek help, either a tax attorney or an enrolled agent.
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