Can Form 3520 Reduced 2023-2024

Hello, Internet! Jim Bakker here, speaking to you from sunny Miami. I received a question the other day about whether my client has to pay taxes in the US for receiving an inheritance. I wanted to make a video to expand on this topic. If you're a US person and a US citizen, you know that you have to report taxes on your worldwide income. There are various informational reporting requirements. For example, you may need to report if you receive a gift from your uncle who lives in another country, or if you receive a distribution from a foreign trust due to an inheritance. In this video, I want to discuss how these scenarios are taxed in the US. From both standpoints, if there are no assets in the US and the foreign person was never a US citizen, there is no tax to pay in the US. However, there are informational disclosures that you need to make. For instance, if you receive ten million dollars from your uncle who lives in Canada and has never lived in the US, you just have to report it and provide all the necessary informational reporting. In such cases, it's advisable to hire someone to assist you with the reporting. Failure to report can result in significant penalties. The tax rate on inheritance and distributions from foreign trusts is essentially zero, as long as there are no US assets being distributed or any US source income involved. Therefore, in terms of filing and reporting, you will need to use Form 3520 to report annual recurrent returns or transactions with foreign trusts, as well as the receipt of certain foreign gifts. This form requires a lot of informational details, such as the description of property and its fair market value. You need to explicitly state...