Inheritance question - Form 3520
 

My wife recently received an inheritance following the death of an English relative. Researching the US tax implications I have been assured by the IRS that no federal taxes will levied on the inheritance but, since it is over $100,000, we will need to fill out a form 3520 - 'purely for informational purposes'. Has anyone on the forum ever filed this form and if so were they subjected to any (nasty) suprises?
Thanks.
Vic Norman.

Re: Inheritance question - Form 3520
 

http://www.thisismoney.co.uk/help-an...&in_page_id=90

Have a look at this page it may help? yes I know its the UK Inheritance tax but there may well be links on there that can help you.
I am in the same boat so lets hope some bright spark can help us out as I am lost also.

I think a visit to a good financial advisor may be the best bet.

Re: Inheritance question - Form 3520
 

Have you checked the IRS website to see if there are any "notes" or some such page to accompany the form?


NC Penguin

Re: Inheritance question - Form 3520
 

You may have misunderstood my question NC Penguin - there's a 12 page instruction manual that comes with the form, so filling it in is not the problem. My concern is what sort of pandora's box might be opened by filing it....
Vic Norman.

Re: Inheritance question - Form 3520
 

I suggest looking for a message board that specializes on US tax issues. Alternatively, get a consultation with a US tax consultant.

BTW, have you got anything to hide?:)


NC Penguin

Re: Inheritance question - Form 3520
 

Its a tax related question...everyone has something to hide :rolleyes:

Re: Inheritance question - Form 3520
 

We really do have nothing to hide...but that might not stop the IRS telling us we have to prove all sorts of details about the inheritance.

Re: Inheritance question - Form 3520
 

Speak for yourself Rushman!:D


NC Penguin

Re: Inheritance question - Form 3520
 

Use Tax

North Carolina has a use tax on purchases made outside the State for use in North Carolina. Residents are responsible for paying the use tax on purchases for which no North Carolina sales or use tax has been charged. The use tax applies to transactions that would be subject to sales tax if the purchase were made in North Carolina. The use tax rate is the same as the sales tax rate that would apply to the purchase if it were made in North Carolina.

In the past, individuals who purchased consumer items had to complete Form E-554, Consumer Use Tax Return, to report and pay their use tax on these items. Beginning with the 1999 tax year, individuals who are required to file an Individual Income Tax Return must report and pay the use tax on those returns. Individuals who are not required to file an Individual Income Tax Return should continue to report and pay the use tax on Form E-554. Businesses must register and file Form E-500, Sales and Use Tax Return, to report and remit use tax due on items purchased for use in their business.