Q: Are there any additional forms for the government besides IRS form 3520 for receiving large amounts of foreign funds?
Hello, I am helping someone figure this out, and they are receiving a large sum of money from Iran that is being transferred to the US, via a Dubai wire transfer.
We have found he is required to file the IRS form 3520. Is there any special treasury form or anything similar he is also required o file to receive the funds? It is supposed to be around 5M, so I was not sure if there is something else special to do.
Thanks for your help
A: The IRS Form should be sufficient for a gift from a non-resident alien. However, they should obtain proper documents to substantiate the gift, if questioned. If the donor is a US person ( as I find out to be the case every now and then), they must consult an OFAC attorney for compliance with the Iranian Transactions and Sanctions Regulations. They also should seek advice of tax attorney knowledgeable in the area of international tax matters such as FBAR, FATCA, etc. Whenever there is a fund transfer from a country sanctioned by the US, such as Iran, special attention must be paid to the potential BSA rules and regulations. Unless you are a lawyer with sufficient knowledge of the US treasury OFAC Regulations and consult with a tax lawyer with international tax expertise, you should refer them to an OFAC attorney, to be on the safe side. $5 million is substantial and many things could go wrong in the process and you may held liable for advising them. The information presented herein is for general purposes only. It is not intended to, and may not be construed as legal, tax or accounting advice. Neither is it intended as a solicitation. For specific advice, please consult an appropriate attorney in person. Good luck. Zaher Fallahi, OFAC and Tax Attorney, CPA.
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