Form 3520 for Indian Gifts & Inheritance: A Checklist for US NRIs
When does a gift or inheritance from India have to go on Form 3520? This is the plain-English checklist — the two thresholds, what counts, the documents to keep, deadlines, and what to ask your CPA.
Form 3520 is the US information return for, among other things, large gifts and bequests from foreign persons. For US-based Indians, it's the form that decides whether a gift from your parents or an inheritance from India has to be disclosed to the IRS. It is not a tax on the gift — but the penalty for not filing can be steep. This is the plain-English checklist.
Educational only — confirm with a CPA
- This is general information, not US tax advice. The Form 3520 thresholds, mechanics, and deadlines change and depend on your facts.
- Confirm with a cross-border CPA, and verify on the IRS.
The two thresholds (confirm the current figures)
- Gifts/bequests from a nonresident alien individual or a foreign estate — report when the year's total exceeds US $100,000. (Your parents are this case.)
- Gifts from a foreign corporation or partnership — a separate, much lower threshold the IRS adjusts annually for inflation (high five figures). Verify the current-year figure on irs.gov.
- The tests are on the aggregate for the year; related donors can be combined.
Do you need to file? — quick checklist
You likely need to look at Form 3520 if…
- You received gifts/bequests from foreign individuals or estates totalling over $100,000 this year
- You received a gift from a foreign company/partnership over the annually-indexed lower threshold
- You received a large inheritance from a parent's estate in India
- Multiple related donors (e.g. both parents) together cross the line
It's usually NOT about…
- A tax on the gift — Form 3520 is a disclosure, not a tax
- Small gifts comfortably under the thresholds
- The income the gift later earns — that's ordinary income reporting, separate from 3520
Documents to keep
- Gift deed / declaration or will / probate / succession documents
- Death certificate and legal heir certificate (for an inheritance)
- Bank wire records on both sides, with dates
- USD value and date of each gift/bequest (for the threshold test)
- Valuation report for non-cash assets (property, gold, shares)
- Donor details — name, relationship, and (for entities) the type of entity
Deadlines and mechanics
How it's filed
- Form 3520 is filed separately from your Form 1040 and generally has the same due date as your return, including extensions.
- A late or missing Form 3520 is where the penalties bite — even with no tax due on the gift.
- Get the mechanics and any catch-up options from your CPA if you've missed a prior year.
Questions to ask your CPA
Bring these to your CPA
- Did my year's foreign gifts/bequests cross the threshold for my donor type?
- Do I need to combine related donors (e.g. both parents)?
- What's the deadline, and does my extension cover Form 3520?
- If I missed a prior year, what's the cleanest way to catch up?
- What documentation should I keep on file to support the filing?
See if your gift or inheritance is in scope
Answer a few questions — donor type, value, asset type, and where it landed — and get a Form 3520 review flag plus the documents to collect.
- Back to the hub: Money from parents: gifts, inheritance & Form 3520
- Siblings: Gift from parents to USA · Inherited Indian property & US tax · Inherited Indian mutual funds & PFIC
- Related: Gifting money to/from India · Inheriting Indian assets & US tax · NRI Tax Forms & Limits Center
Frequently asked questions
When do I have to file Form 3520 for a gift from India?
You generally file when your year's total gifts and bequests from foreign individuals or estates exceed US $100,000, or when a gift from a foreign corporation or partnership exceeds the separate, annually-indexed lower threshold. The tests are on the aggregate, and related donors can be combined.
Is there a tax due with Form 3520?
No. For reporting a foreign gift or inheritance, Form 3520 is an information return — a disclosure, not a tax. The financial risk is the penalty for failing to file or filing late, which can be a percentage of the unreported amount.
When is Form 3520 due?
It is generally due at the same time as your income-tax return, including extensions, but filed separately. Confirm the exact mechanics and whether your extension covers it with a cross-border CPA.
What if I missed filing Form 3520 in a past year?
There may be ways to catch up, and reasonable-cause relief can apply in some situations. Because penalties can be significant, don't guess — speak with a cross-border CPA about the cleanest path for your facts.