Part IV—U.S. Recipients of Gifts — 1225 Inst 3520 (PDF)

Complete Part IV if you are a U.S. person who has received gifts or bequests from a foreign person or estate.

A gift to a U.S. person does not include any amount paid for qualified tuition or medical payments made on behalf of the U.S. person.

If a foreign trust makes a distribution to a U.S. person, the U.S. person must report the amount as a distribution in Part III, rather than as a gift in Part IV.

Note: If you fail to timely report foreign gifts that should be reported under section 6039F, the IRS may determine the income tax consequences of the receipt of such gift, and penalties may be imposed. See Penalties , earlier.

Contributions of property by foreign persons to domestic or foreign trusts that have U.S. beneficiaries are not reportable by those beneficiaries in Part IV unless they are treated as receiving the contribution in the year of the transfer. For example, if the U.S. beneficiary is treated as an owner of that portion of the trust under section 678, then the contribution must be reported by such U.S. beneficiary in Part IV.

A domestic trust that is not treated as owned by another person is required to report the receipt of a contribution to the trust from a foreign person as a gift in Part IV.

A domestic trust that is treated as owned by a foreign person is not required to report the receipt of a contribution to the trust from a foreign person. However, a U.S. person should report the receipt of a distribution from a domestic trust that is treated as owned by a foreign person as a gift from a foreign person in Part IV, rather than as a distribution to a U.S. person in Part III.

Line 54. Check “Yes” if during the current tax year, you received more than $100,000 that you treated as gifts or bequests from a nonresident alien, including a distribution received from a domestic trust treated as owned by a foreign person or a foreign estate. Complete columns (a) through (c).

Brian, a nonresident alien individual, and you know that Abby and Brian are related, you must answer “Yes” and complete columns (a) through (c) for each gift.

Line 56. Check “Yes” if you have any reason to believe that the foreign donor, in making any gift or bequest described in lines 54 and 55, was acting as a nominee or intermediary for any other person. If the ultimate donor on whose behalf the reporting donor is acting is a foreign corporation or foreign partnership, attach an explanation including the ultimate foreign donor’s name, address, TIN (if any) and whether it is a corporation or partnership.

If the ultimate donor is a foreign trust, treat the amount received as a distribution from a foreign trust and complete Part III.

Privacy Act and Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws of the United States. You are required to give us the information. We need it to ensure that you are complying with these laws and to allow us to figure and collect the right amount of tax.

Our authority to ask for information is sections 6001, 6011, and 6012(a) and their regulations, which require you to file a return or statement with us for any tax for which you are liable. Your response is mandatory under these sections. Section 6109 requires you to provide your TIN. You must fill in all parts of the tax form that apply to you.

However, if you answered “Yes” but none of the individual gifts or bequests received exceeds $5,000, do not complete columns (a) through (c). Instead, enter in column (b) of the first line, “No gifts or bequests exceed $5,000.”

If you received a gift or bequest from a covered expatriate, you may have to file Form 708. See sections 877A and 2801, and What’s New—Estate and gift tax for additional information.

Line 55. Check “Yes” if you received aggregate amounts in excess of the section 6039F threshold amount during the current tax year that you treated as gifts from any of the following.

Foreign corporations.
Foreign partnerships.
Any foreign persons that you know or have reason to know that are related to such foreign corporations or foreign partnerships.

For example, if you, a calendar-year taxpayer during 2023, received $8,000 from Xander Corp. (a foreign corporation) that you treated as a gift, and $15,000 that you received from Allison (a nonresident alien) that you treated as a gift, and you know that Xander Corp. is wholly owned by Allison, you must complete columns (a) through (g) for each gift.

To obtain the threshold amount, go to IRS.gov/ InflationAdjustment . Select the applicable tax year news release, then click on the Rev. Proc. link and search for section 6039F to see the threshold amount under Notice of Large Gifts Received from Foreign Persons.

Note: Gifts from foreign corporations or foreign partnerships are subject to recharacterization by the IRS under section 672(f)(4).

To calculate the threshold amount of $100,000, you must aggregate gifts from different foreign nonresident aliens and foreign estates if you know, or have reason to know, that those persons are related to each other or if one is acting as a nominee or intermediary for the other. See Related Person , earlier.

For example, if you receive a gift of $75,000 from Abby, a nonresident alien individual, and a gift of $40,000 from

14 Instructions for Form 3520 (Rev. 12-2025)

You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential, as required by section 6103. However, section 6103 allows or requires the IRS to disclose or give the information shown on your tax return to others as described in the Code. For example, we may disclose your tax information to the Department of Justice to enforce the tax laws, both civil and criminal, and to cities, states, the District of Columbia, and U.S. commonwealths or territories to carry out their tax laws. We may also disclose this information to other countries under a tax treaty, to federal and state agencies to enforce federal nontax criminal laws, or to federal law enforcement and intelligence agencies to combat terrorism. Failure to provide this information, or providing false information, may subject you to fines or penalties.

Keep this notice with your records. It may help you if we ask you for other information.

The time needed to complete and file this form and related schedules will vary depending on individual

circumstances. The estimated burden for individual taxpayers filing this form is approved under OMB control number 1545-0074 and is included in the estimates shown in the instructions for their individual income tax return. The estimated burden for all other taxpayers who file this form is shown below.

Recordkeeping . . . . . . . . . . . . . . . . . . . . . . 42 hr., 34 min.

Learning about the law or the form . . . . . . . . . 4 hr., 50 min.

Preparing the form . . . . . . . . . . . . . . . . . . . 6 hr., 40 min.

Sending the form to the IRS . . . . . . . . . . . . . 16 min.

If you have comments concerning the accuracy of these time estimates or suggestions for making this form simpler, we would be happy to hear from you. You can send us comments through IRS.gov/FormComments . Or, you can write to the Internal Revenue Service, Tax Forms and Publications, 1111 Constitution Ave. NW, IR-6526, Washington, DC 20224. Do not send the form to this office. Instead, see When and Where To File , earlier.

Instructions for Form 3520 (Rev. 12-2025) 15