Sample output — fictional facts
Foreign Gift or Inheritance — U.S. Filing Plan
Accepted question: Reconcile the two 2025 transfers from one foreign parent, test the more-than-$100,000 information-reporting threshold, and list the U.S. records, deadlines, and next actions.
Scope: One household, one recipient, one gift event, one filing year (2025), one foreign-individual source group, within a proposed 3-transfer / 8-file / 25-page review cap plus one organizer.
All names, dates, and figures in this sample are fictional. The threshold screening is produced by the versioned rule table and remains a screening result, not a filed position. This plan is not return preparation, foreign tax or legal advice, probate, valuation, or a trust/entity classification opinion.
Threshold screening
Form 3520 Part IV report required on these facts
Aggregate $105,000 exceeds the more-than-$100,000 threshold for this single source group.
Aggregate tested: $105,000 · threshold: $100,000
Accepted facts
- Recipient: Álvaro Demo Herrera (U.S. person, single) (—)
- Source: María Demo Herrera — parent (foreign individual, nonresident) (gift-letter-parent.pdf, p. 1)
- Relationship: Parent (gift-letter-parent.pdf, p. 1)
- Filing year: 2025 (bank-statements-2025.pdf, p. 2)
- Event: Gift (two transfers, one event) (bank-statements-2025.pdf, p. 2)
- Source category: Nonresident individual / foreign estate (direct) (gift-letter-parent.pdf, p. 1)
- Recipient/source status: Confirmed (gift-letter-parent.pdf, p. 1)
Receipt timeline and source groups
| Receipt / source group | Source person / role | Date | Amount / currency | Bank reference | Claimed nature | Supporting source / page | Difference / question | Action |
|---|---|---|---|---|---|---|---|---|
| Group A · Transfer 1 | María Demo Herrera — parent (foreign individual, nonresident) | 2025-03-14 | 60,000 USD | bank-statements-2025.pdf | Direct gift | bank-statements-2025.pdf, p. 2 | — | Reconciled to the source record |
| Group A · Transfer 2 | María Demo Herrera — parent (foreign individual, nonresident) | 2025-09-02 | 40,500 EUR | bank-statements-2025.pdf | Direct gift | bank-statements-2025.pdf, p. 5 | — | Reconciled to the source record |
Reconciled original-currency amounts and conversion
| Item | Original amount | USD amount | Status | Source |
|---|---|---|---|---|
| Transfer 1 (2025-03-14) | 60,000 USD | $60,000 | Reviewer-supported | bank-statements-2025.pdf, p. 2 |
| Transfer 2 (2025-09-02) | 40,500 EUR | $45,000 | Reviewer-supported | bank-statements-2025.pdf, p. 5 |
| Aggregate tested | — | $105,000 | Related-source group total | |
- Method: Reviewed conversion applied to the EUR transfer; the USD transfer needs no conversion.
- Rate source: Reviewed year-end rate (fictional example)
- Status: Reviewer-supported
U.S. income and information-reporting analysis
| Area | Question | Status | Note |
|---|---|---|---|
| Information reporting | Is Form 3520 Part IV required for this source group? | Reviewer-supported | Aggregate $105,000 exceeds the more-than-$100,000 threshold for one foreign-individual group. |
| U.S. income | Is the receipt federal taxable income? | Client-confirmed | A genuine gift is generally excluded; later income from the property is a separate question. |
| Aggregation | Do other receipts belong to this source group? | Client-confirmed | No other gifts or bequests were disclosed in the annual-receipts screen. |
| Account reporting | Do the funds create foreign-account reporting questions? | Unresolved | The funds were received into a foreign account. FBAR/Form 8938 questions are flagged, not resolved. |
| Deadline | Which filing-year deadline and extension facts apply? | Reviewer-supported | Confirm the exact calendar-year date and any abroad extension for the filing year. |
Decision table
| Issue | Recipient | Verified facts | Source category | Authority / year | Conclusion or unresolved point | Required record | Owner | Next step |
|---|---|---|---|---|---|---|---|---|
| Form 3520 Part IV — foreign gift/bequest reporting | Álvaro Demo Herrera | One foreign-individual source group; aggregate $105,000 across two transfers (USD 60,000 + EUR 40,500 converted at a documented rate to USD 45,000). | Nonresident alien individual / foreign estate (direct) | IRC § 6039F and the applicable Form 3520 instructions (Part IV), with related-person/intermediary aggregation (filing year 2025; verify the current revision) | Aggregate $105,000 exceeds the more-than-$100,000 threshold for this source group. Part IV reporting is required on these facts. | Source identity, transfer dates, original-currency amounts, and the conversion method. | Chip | Include Part IV in the plan and confirm the filing-year deadline and extension facts. |
| Federal income treatment of the receipt | Álvaro Demo Herrera | The transfer is asserted and evidenced as a gift from a parent. | Nonresident alien individual / foreign estate (direct) | IRC § 102; IRS Pub. 525 (filing year 2025) | A genuine gift is generally excluded from gross income. Income in respect of a decedent, estate/trust income, § 2801 covered-expatriate receipts, and later income are separate questions. | Evidence of the asserted nature (gift letter). | Chip | State the income exclusion and list later-income and § 2801/Form 708 questions separately. |
| Aggregation of related vs unrelated sources | Álvaro Demo Herrera | Both transfers are from the same parent; no other receipts were disclosed in the annual-receipts screen. | Nonresident alien individual / foreign estate (direct) | IRC § 6039F — related-person/intermediary aggregation | Both transfers aggregate within the one source group. Genuinely unrelated donors are never pooled into one universal threshold. | The annual-receipts screen answers. | Chip | Keep the aggregation arithmetic and relationships in the appendix. |
| Filing deadline and extension accounting | Álvaro Demo Herrera | Filing year 2025. | Nonresident alien individual / foreign estate (direct) | Applicable Form 3520 instructions (filing year 2025); Forms 4868/7004 for extension interplay | For a calendar year the general due date is the 15th day of the fourth month; the abroad extension may add two months. Confirm the exact filing-year date. | Filing-year instructions. | Chip | State the deadline as a conclusion with its extension facts, not as “verify the deadline”. |
| Foreign account reporting (FBAR / Form 8938) | Álvaro Demo Herrera | The funds were received into a foreign bank account. | Foreign financial account | 31 U.S.C. § 5314 (FBAR); IRC § 6038D (Form 8938) | Flagged as a separate reporting question; not concluded in this plan. | Account statements and maximum balances. | Chip / preparer | Add the account-reporting question to the next actions and refer if it is the primary issue. |
| Evidence sufficiency and source references | Álvaro Demo Herrera | Two transfers recorded; every material figure is connected to a document/page. | Nonresident alien individual / foreign estate (direct) | Plan evidence standard (prototype) | Every material fact is connected to a source, or listed as missing. | Bank statements (supplied) and the gift letter (supplied). | Chip | Provide the missing evidence listed in the plan, or confirm the conclusion remains unresolved. |
Account-reporting questions
The funds were received into a foreign bank account. FinCEN/FBAR and Form 8938 questions are flagged as separate reporting channels and are not concluded in this plan.
Records gaps
- Confirm the reviewed conversion rate source and date are the accepted method for the filing year.
- Confirm no other gifts or bequests were received from this or a related source in the filing year.
Ordered next actions
- Chip — Confirm the exact filing-year Form 3520 due date and the abroad/extension facts. (required record: Current IRS Form 3520 instructions for the filing year.)
- Customer — Confirm no further receipts or related sources affected the year. (required record: The annual-receipts screen.)
- Customer / preparer — Prepare or file Form 3520 Part IV by the applicable deadline (filing is separate), and review the flagged account-reporting question. (required record: The reconciled workpaper and account statements.)
Separately quoted preparation next steps
If preparation is requested, it is quoted separately after the deadline and account-reporting questions are confirmed. This plan does not prepare or file any return or information return.
Appendix — receipt and source table
| Item | Date | Original amount/currency | Proposed U.S. treatment (to review) | Source/page | Verified/unknown | Next action |
|---|---|---|---|---|---|---|
| Transfer 1 | 2025-03-14 | 60,000 USD | Reportable receipt (Part IV, to review) | bank-statements-2025.pdf, p. 2 | Reviewer-supported | Confirm the filing-year deadline |
| Transfer 2 | 2025-09-02 | 40,500 EUR (→ $45,000 USD) | Reportable receipt (Part IV, to review) | bank-statements-2025.pdf, p. 5 | Reviewer-supported | Confirm the filing-year deadline |
Estimates and assumptions (labeled)
- Labeled assumption: All names, dates, and amounts are fictional and used only to demonstrate the plan.
- Labeled assumption: the EUR conversion uses a reviewed fictional rate; the accepted method is confirmed before delivery.
Notices and limits
- This plan is an information-reporting screen and record reconciliation. It is not return preparation, foreign tax or legal advice, probate, valuation, or a trust/entity classification opinion.
- Filing is separate from this plan.
- Form 3520 is an information return, not a tax return, and the deadline is confirmed against the filing-year instructions.