No Tax Return or Taxes Due & Form 3520
No Tax Return or Taxes Due & Form 3520: A common misconception that many taxpayers (understandably) have, is that if a person is not required to file a tax return, then they are not required to file a form 3520 with the IRS – but that is incorrect. In fact, nearly all international information reporting forms are required to be filed by taxpayers in any year they meet the threshold requirements for reporting the particular form – even if they do not have to filing tax return. The main (common) exception to this rule is form 8938. Therefore, if you meet the form 3520 filing requirement, then you are required to file the form even, if you do not have to file a tax return in the year the 3520 reporting is due.
Do I file form 3520 if there is no tax return or taxes due.
Form 3520 if No Tax Return or Taxes Due
While the filing date for the form 3520 coincides with the person’s tax filing date, there is no requirement that a person has to file a tax return in order to be subject to the requirements for having to file a form 3520.
In other words, if a person has to file a form 3520 they are not exempt from filing simply because they may not have met the threshold for having to file a US tax return in the year the form 3520 is due.
Form 3520 Filed Separately
The form 3520 as filed separately from your income tax return.
As provided by the IRS:
“In general, the due date for a U.S. person to file a Form 3520 is the 15th day of the 4th month following the end of the U.S. person’s tax year.
If a U.S. person is granted an extension of time to file an income tax return, the due date for filing Form 3520 is the 15th day of the 10th month following the end of the U.S. person’s tax year.
Internal Revenue Service Center
P.O. Box 409101
Ogden, UT 84409
In conclusion, even if there is no tax return or taxes due, the Taxpayer may still need to file Form 3520 when they meet the 3520 filing requirements for Foreign Gifts (including inheritance) and foreign trusts — unless an exception, exclusion or limitation applies.
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