Hello all,
I am a US permanent resident I have a relative in UK who wants to send a gift to me, roughly around 150k pounds which would be around 200 grands.
I do have an account in UK but I was told that I have to report to IRS about overseas account that exceeds certain amount of money. But I was wondering if I should just transfer it over to my US account and avoid the whole reporting foreign account stuff.
I always did my tax myself and I have never done this FBAR and FATCA. Now I am wondering if i should get a CPA to do the tax for me or I do it myself – my tax filing has been always simple and straight forward because I don't run business or have diverse sources of income.
Thanks in advance,
Oversea account FBAR and FATCA question
byu/OtherwisePresence661 intax
Posted by OtherwisePresence661
1 Comment
The gift itself isn’t taxable in the US if it’s from a non-US person. No US gift tax to you.
The issue is reporting, not tax:
• If the money sits in your UK account and the balance exceeds $10k at any time, you must file FBAR.
• Large foreign gifts over $100k must be disclosed on Form 3520.
• Moving the money to a US account doesn’t avoid reporting if the balance crossed the threshold overseas.
Given the amount and the penalties for missing FBAR/3520, this is one of those cases where using a CPA with international experience is worth it, even if your tax return is otherwise simple.