§6039F Notice of Large Gifts Received From Foreign Persons

Summary

If a United States person (other than a tax-exempt 501(c) organization) gets more than $10,000 in foreign gifts total during a tax year, that person must give the Secretary information about each gift at the time and in the way the Secretary requires. The $10,000 threshold is increased for inflation for years after December 31, 1996. Foreign gift — money or property from someone who is not a U.S. person that the recipient treats as a gift or bequest; it does not include certain qualified transfers or distributions already reported under other rules. If the required report is not filed on time, the Secretary will decide the tax effects and can charge a penalty of 5% of the gift amount for each month the report is late, up to 25% total. No penalty applies if the late filing was due to reasonable cause and not willful neglect. The Secretary must issue rules to carry out these requirements.