§6039F Notice of large gifts received from foreign persons

Summary

If a United States person gets more than $10,000 in total gifts from people who are not U.S. persons in one tax year, they must give the information about each gift when and how the IRS requires. If they fail to report on time, the IRS can decide the tax effects and charge a penalty equal to 5% of the gift for each month the report is late, up to a 25% total penalty, unless the person shows the late filing was for reasonable cause and not willful neglect. For tax years starting after December 31, 1996, the $10,000 limit is increased for inflation under section 1(f)(3) with “1995” substituted for “2016.” The IRS will write rules to carry out these requirements. Definitions: “Foreign gift” — a gift or bequest from someone who is not a U.S. person (with certain transfers and already‑reported distributions excluded). “United States person” — a U.S. person, except organizations described in section 501(c) and exempt under section 501(a).