receiving money overseas

[ckim111]

What is the name of your state?NY

I have received a large sum of money 100k this month from a relative who wired this money to my bank account this month from another country. Do I need to pay taxes on this amount? I know receiving large sums of money into my bank raises a flag by the IRS. What, if any problem can this cause for me? Thank you for any help

 

[BelizeBreeze]

What is the name of your state?NY

I have received a large sum of money 100k this month from a relative who wired this money to my bank account this month from another country. Do I need to pay taxes on this amount? I know receiving large sums of money into my bank raises a flag by the IRS. What, if any problem can this cause for me? Thank you for any help

The IRS already knows you have the money.

 

[Some Random Guy]

Links to the 2004 IRS forms

http://www.irs.gov/pub/irs-pdf/f3520.pdf
http://www.irs.gov/pub/irs-pdf/i3520.pdf

from the instructions:
A penalty generally applies if Form 3520 is not timely
filed or if the information is incomplete or incorrect.
Generally, the penalty is:
1. 35% of the gross value of any property transferred
to a foreign trust for failure by a U.S. transferor to report
the transfer,
2. 35% of the gross value of the distributions received
from a foreign trust for failure by a U.S. person to report
receipt of the distribution, or
3. 5% of the amount of certain foreign gifts for each month for
which the total failure to report continues (not to exceed a
total of 25%). See section 6039F(c).

 

[ckim111]

please explain

ok.. so does this mean that I need to have filed this form beforehand? So what can I do about it now? Sorry for all these questions and this is a first for me..

I basically need to know if my uncle sends me 100k or even 99k from another country, if the IRS will tax it. The reason why I ask is this. The money although it came through my account, was sent to his daughter to lives in the states. My uncle lives in a foreign country and just neeeded to use my bank account for me to relay the money to his daughter. Even if I did not earn any interest on this money (it only stayed in my acct for 2 days) will I be held responsible for paying any fees or taxes? Thank you in advance..

 

[Snipes5]

Yes, you are responsible. The transaction has been reported to the Department of the Treasury by the bank. You will have to file form 3520, although there is no tax on gifts. You must file the form.

Snipes

 

[BelizeBreeze]

Yes, you are responsible. The transaction has been reported to the Department of the Treasury by the bank. You will have to file form 3520, although there is no tax on gifts. You must file the form.

Snipes

Awwwww DAMN snipes....you took all the fun out of watching him squirm.

I imagined him running down to the bank and using his atm card to take the money out $200 at a time and stuffing it under his mattress.

 

[Snipes5]

Another one will come along soon. "Do I have to pay tax on the gift I received", is one of the most popular questions asked here, wouldn't you agree?

Someone should start answering, "I don't know, have you ever used a search engine?"

The tax for failure to use a seach engine can be fairly high.

Snipes

 

[BelizeBreeze]

Another one will come along soon. "Do I have to pay tax on the gift I received", is one of the most popular questions asked here, wouldn't you agree?

Totally

Someone should start answering, "I don't know, have you ever used a search engine?"

Nope. The automatic answer should be to call 1-800-829-0433 and ask them

The tax for failure to use a seach engine can be fairly high.

Snipes

Especially if they call the above number