[dotak]

My Father passed away early this year in South Africa and part of my inheritance was a$30,000 cash in one my fathers bank account in South Africa. I will like to know the tax and reporting implications when I decide to move the funds to my own bank account in the US. Thanks

Dee.

[AtlantaTaxExpert]

Dee:

You will probably have to file Form 3520 to properly document the money transfer, but no taxes (either income or estate) will be due to the IRS on this money.

[IntlTax]

No form 3520 is necessary unless the amount exceeds US$100,000.

[AtlantaTaxExpert]

Intl Tax:

Is any other documentation required?

[IntlTax]

No.

[AtlantaTaxExpert]

I find that surprising, given that financial transactions in the $10K range within the U.S. are normally reported to the IRS by the banks.

[IntlTax]

You are thinking of the reporting requirements for "cash" or "currency" transfers in excess of $10,000. There is no special reporting requirement for a check or wire transfer in excess of $10,000.

[AtlantaTaxExpert]

Yes, that is true. I just deposited a large check for my daughter without incident.

[MukatA]

My Father passed away early this year in South Africa and part of my inheritance was a$30,000 cash in one my fathers bank account in South Africa. I will like to know the tax and reporting implications when I decide to move the funds to my own bank account in the US. Thanks
Dee.

There is no tax on inheritance, and in your case to reporting is required. If you transfer the cash in your bank account in a foreign country, then you need to file Form TD F 90-22.1.
If money is transferred directly from your father's bank account to your bank account in the U.S. Form TD F 90-22.1 is not required, unless you have more than $10,000 in foreign bank accounts.

[troubledmind]

I was depositing $US to one acct over the past 15 years. Money I worked for here and have paid taxes. If I want to wire the full amount back here (more than ($100,000) can I do it without being questioned? I read abovethat if the moneyh is more than 100K then I have to fill out the form TD F 90-22.1 or 3520 (which one applies?). Can I split the wire and transfer 100K one time and 100K another day? What do you recommend I do?

[AtlantaTaxExpert]

Transfer the money. The Form 3520 is an information only. If you can account from where the money came, you should have little problem.

The other form is the FBAR, which informally stands for Foreign Bank Account Report.

[AtlantaTaxExpert]

The FBAR (Foreign Bank Account Report) required annually to reveal foreign account that, in total, exceed $10,000.

If you have never submitted this form, you need to submit a "quiet" submission for the past seven years to get into compliance with the disclosure laws.