3520 reporting of gifts

[goldstone]

I understand that gifts over $ 100k made from a non US resident to a US resident have to be reported on a 3520.

Does anyone know why this reporting is required ? And, more importantly, is it an entirely routine matter or are there any tax consequences ?

[nelsona]

IRS tracks gifts made by US residents too, so 3520 is a was to track foreign gifts.

No tax consequences.

[goldstone]

Thanks.

[goldstone]

Thanks.

[olivew211]

Interesting to note, the 3520 form isn't just about reporting, it also helps the IRS prevent money laundering and ensure that large foreign gifts don't go unreported.