Tax,
International Law
Aug. 11, 2022
Unreported gifts from non-U.S. relatives bring big tax penalties
The penalty for late filing is 5% of the gift’s fair market value per month, not to exceed 25% of the gift.
In 2019, Grandpa Kim died in Seoul, Korea. His estate left $200,000 to both of his grandchildren, who live in Los Angeles. Jennifer is a lawyer working at a large Century City firm and her brother James works at a Korean restaurant.
In January 2020, Jennifer met with her CPA, a partner in a 40-person West Los Angeles firm. The CPA told her to file Form 3520 to report the inheritance and assured her the form is only to report the gif...
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