Penalties for failure to file required FBAR reports disclosing foreign financial accounts for taxpayers who do not participate in one of the available Offshore Voluntary Disclosure Programs are severe. Civil penalties for non-willful failure to file,…
I received an inheritance from a non-resident alien relative who lived in a foreign country. Do I have to report this foreign money even though an inheritance in the United States is not considered "income"?
Only if the total amount you receive is valued at more than $100,000. If so, you must complete Form 3520Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts. This is separate from your income tax return filing requirement and generally will not result in taxable income provided the money is a legitimate gift or bequest.