1. Form 3520

.01 Gift / inheritance received from Non-US Person requires reporting in Form 3520 if the amount of gift received/assets inherited exceeds US$ 100,000.

.02 Form 3520 is also required to be filed if distribution from Foreign trust is received.

.03 Failure to timely report foreign gifts will be subject to penalty equal to 5% of the amount of the foreign gift for each month for which failure continues and can raise up to 25%.

.04 Failure to timely file Form 3520 or file the incomplete or incorrect form will be subject to penalty equal to greater of US$ 10,000 or 35% of the gross value of the distribution received from Foreign trust.

.05 IRS weblink : https://www.irs.gov/pub/irs-pdf/i3520.pdf

2. Form 3520A

.01 A foreign trust with a U.S. owner is required to Form 3520-A

.02 Failure to timely file Form 3520A or file the incomplete or incorrect form will be subject to penalty equal to greater of US$ 10,000 or 5% of the gross value of the portion of the trust's assets treated as owned by the U.S. person at the close of that tax year

.03 IRS weblink : https://www.irs.gov/pub/irs-dft/i3520a--dft.pdf

3. Form 709

.01 Gift given requires reporting in Form 709 if gift to each donee exceeds US$ 15000.  Lifetime gift and estate exclusion is  $11,400,000 for year 2019.

.02 Failure to timely file Form 709 will be subject to penalty which can range from 5% to 25% of the amount of gift tax.

.03 Penalty for Non Payment of gift tax can range from 0.5% to 25% of the amount of gift.

.04 IRS weblink : https://www.irs.gov/pub/irs-pdf/i709.pdf

4. Form 5471

.01 Investment of 10% or more in Foreign Corporation requires reporting in Form 5471

.02 Form 5471 is attached to the Federal Income Tax return.

.03 Failure to timely file Form 5471 or failure to furnish the correct information will be subject to penalty of US$ 10,000 for each Corporation.

.04 IRS weblink : https://www.irs.gov/pub/irs-pdf/i5471.pdf

5. Form 8865

.01 Investment of 10% or more in Foreign Partnership Firm requires reporting in Form 8865

.02 Form 8865 is attached to the Federal Income Tax return.

.03 Failure to timely file Form 8865 or failure to furnish the correct information will be subject to penalty of US$ 10,000 for each Partnership firm.

.04 IRS weblink : https://www.irs.gov/pub/irs-pdf/i8865.pdf

6. Form 2555

.01 In order to claim Foreign Earned Income Exclusion and housing exclusion, Form 2555 is to be filed.

.02 Form 2555 is attached to the Federal Income Tax return.

.03 The limit of Foreign Earned Income Exclusion for the year 2019 is US$ 105,900.

.04 IRS weblink : https://www.irs.gov/pub/irs-pdf/i2555.pdf

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