§6039F Notice of Large Gifts Received From Foreign Persons

Summary

If a U.S. person (except a tax‑exempt 501(c) organization) gets more than $10,000 in gifts from non‑U.S. persons in one tax year, they must give the information the Secretary requires about each gift. A "foreign gift" is money or property from someone who is not a U.S. person that the receiver treats as a gift or bequest. It does not include certain qualified transfers under section 2503(e)(2) or distributions already reported under section 6048(c). If the report is late, the Secretary will decide the tax effects and can charge a penalty of 5% of the gift amount for each month late, up to 25% total, unless the late report was for reasonable cause and not willful neglect. For tax years after December 31, 1996, the $10,000 threshold is increased for inflation using the cost‑of‑living formula in section 1(f)(3) (substituting “1995” for “2016” as that rule says). The Secretary must write rules to implement these requirements.