Interest in Foreign Entities (Copy)

The U.S. Individual Filing Requirements section is organized into key categories of international reporting, including Foreign Financial Assets, Gifts Received, Gifts Made, Foreign Trusts, Foreign Partnerships, and Foreign Corporations.

Within each category, a series of events or conditions that trigger a U.S. international information reporting requirement are presented in the form of flashcards.

Each flashcard represents a specific triggering condition. The front of the card describes the relevant fact pattern or ownership threshold, while the reverse side identifies the IRS form required when that condition is met.

This structure allows tax professionals to quickly match a client’s facts with the applicable international reporting obligation, helping ensure that the correct forms are included with the tax return.

1.1 FOREIGN FINANCIAL ASSETS

Had financial interest in or signature authority over foreign financial account(s) AND the aggregate maximum value exceeds $10,000 at any time during the calendar year.

FinCEN Form 114 - Report of Foreign Bank and Financial Accounts (FBAR)

The FBAR is a separate filing requirement from the federal income tax return. It is filed electronically with the Financial Crimes Enforcement Network (FinCEN), not with the IRS.
The FBAR is not attached to Form 1040 or any other income tax return. Some software (most tax software, actually) can generate the form and e-file it with FinCEN along with the Form 1040..
The $10,000 threshold applies to the aggregate maximum value of all foreign financial accounts

Lived in the United States, and the total value of your foreign financial assets exceeded the applicable threshold: Single / MFS / HH more than $50,000 at year-end or more than $75,000 at any time during the year; MFJ more than $100,000 at year-end or more than $150,000 at any time during the year.

Form 8938 — Statement of Specified Foreign Financial Assets

Form 8938 applies to U.S. individuals who meet the IRS definition of living abroad.
Higher reporting thresholds apply to individuals living outside the United States.
Foreign assets may also be reportable on the FBAR depending on asset type

Lived outside the United States, and the total value of foreign financial assets exceeded the applicable threshold: Single / MFS / HH more than $200,000 at year-end; MFJ more than $400,000 at year-end.

Form 8938 — Statement of Specified Foreign Financial Assets

Form 8938 is filed with the IRS and attached to the individual income tax return.
Reporting thresholds depend on filing status and U.S. residency.
Some assets may be reportable on both Form 8938 and the FBAR, but the requirements are separate

1.2 GIFTS RECEIVED

Received gifts or inheritances from a foreign individual or foreign estate totaling more than $100,000 during the year.

Form 3520 — Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts

Form 3520 is used to report certain foreign gifts and inheritances received by U.S. individuals.
The $100,000 threshold applies to the aggregate amount received during the year.
Form 3520 is filed separately from the individual income tax return

Received gifts from a foreign corporation totaling more than $19,570 during the year.

Form 3520 - Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts

Form 3520 is required to report certain gifts received from foreign corporations
The reporting threshold applies to the aggregate value of gifts received during the year.
Form 3520 is filed separately from the individual income tax return.

1.3 GIFTS MADE

Made gifts to a foreign individual or to a foreign partnership that exceed $19,000 per recipient, or $38,000 per recipient if married and electing to split gifts.

Form 709 — United States Gift (and Generation-Skipping Transfer) Tax Return

Form 709 is required to report gifts that exceed the annual exclusion (for both US and international gifts).
Gifts to partnerships are treated as gifts to the individual partners based on ownership interests.
Gift tax may not be owed if the lifetime exemption applies, but filing may still be required.
Form 709 is filed separately from the individual income tax return.

Made gifts to a spouse who was not a U.S. citizen that exceeded the 2025 annual exclusion of $190,000 during the year.

Form 709 — United States Gift (and Generation-Skipping Transfer) Tax Return

Form 709 is filed separately from the individual income tax return.
Gifts to a non-U.S. citizen spouse do not qualify for the unlimited marital deduction.
In 2025, the special annual exclusion for gifts to a non-U.S. citizen spouse was $190,000.

1.4 FOREIGN TRUST

Owned, created, transferred assets to, or had a beneficial interest in a foreign trust during the year.

Form 3520 - Annual Return To Report Transactions With Foreign Trusts / Form 3520-A - Annual Information Return of Foreign Trust With a U.S. Owner

Form 3520: An information return filed by a U.S. person to report certain transactions with a foreign trust (such as transfers to the trust or distributions from it) and receipt of large foreign gifts or inheritances.
Form 3520-A: An annual information return for a foreign trust with a U.S. owner that reports the trust’s financial activity and provides statements to the U.S. owner and beneficiaries.
Form 3520 reports the U.S. person’s transactions or relationship with the foreign trust, while Form 3520-A reports the foreign trust’s annual financial information when it has a U.S. owner.

1.5 FOREIGN PARTNERSHIP

Controlled/owned more than a 50% interest in a foreign partnership?

Form 8865 - Return of U.S. Persons With Respect to Certain Foreign Partnerships, Category 1 Filer

A Category 1 filer for Form 8865 is a U.S. person who controlled a foreign partnership at any time during the tax year. This filer must report comprehensive financial information.
See here for more info about specific Schedules by Category of Filer.

Owned more than 10% of a foreign partnership that was controlled by U.S. persons.

Form 8865 - Return of U.S. Persons With Respect to Certain Foreign Partnerships, Category 2 Filer

A Category 2 for Form 8865 filer does not individually control the partnership but must still report certain ownership information. The reporting requirements are generally more limited.
See here for more info about specific Schedules by Category of Filer.

Contributed property to a foreign partnership in exchange for an interest and owned at least 10% after contribution.

Form 8865 - Return of U.S. Persons With Respect to Certain Foreign Partnerships, Category 3 Filer

Category 3, Form 8865 filing is triggered by a contribution of property to a foreign partnership where the post-contribution ownership is at least 10%.
See here for more info about specific Schedules by Category of Filer.

Contributed property to a foreign partnership and the total value contributed during the 12-month period exceeded $100,000.

Form 8865 - Return of U.S. Persons With Respect to Certain Foreign Partnerships, Category 3 Filer

Category 3, Form 8865 filing is also triggered when the aggregate value of property contributed during a 12-month period exceeds $100,000.
See here for more info about specific Schedules by Category of Filer.

1.6 FOREIGN CORPORATION

Transferred more than $100,000 in cash or property to a foreign corporation while owning less than 10% (by vote and value) immediately after the transfer.

Form 926-Return by a U.S. Transferor of Property to a Foreign Corporation

Form 926 may be required independently or in conjunction with Form 5471. In certain situations, Form 926 is required even when Form 5471 is not applicable.
The transaction may result in the recognition of capital gain under IRC §367.

Acquired or disposed of stock resulting in meeting or ceasing to meet the 10% ownership threshold.

Form 5471 - Information Return of U.S. Persons With Respect to Certain Foreign Corporations - Category 3 Filer

Category 3 filers include U.S. persons who experience significant ownership changes during the tax year.
Filing is triggered by cross-boundary acquisitions or disposals of stock segments.

Had control of a foreign corporation during the corporation’s annual accounting period (more than 50% ownership).

Form 5471 - Information Return of U.S. Persons With Respect to Certain Foreign Corporations - Category 4 Filer

Category 4 filers are those who control a foreign entity by holding more than 50% voting power or value.
Comprehensive reporting of income, assets, and liabilities is required.

A foreign corporation in which more than 50% of the total voting power OR total value is owned (directly, indirectly, or constructively) by U.S. shareholders*.

“U.S. shareholders,” in the CFC context, are U.S. persons who own, directly, indirectly, or constructively, at least 10% of the foreign corporation’s total voting power or total value.

Owned at least 10% of a Section 965 specified foreign corporation (SFC) during the corporation’s tax year.

Form 5471 - Information Return of U.S. Persons With Respect to Certain Foreign Corporations - Category 1 Filer

Category 1 for Form 5471 applies to U.S. shareholders of SFCs.
Requires inclusion of accumulated post-1986 deferred foreign earnings under the TCJA transition tax.

Owned stock as a U.S. shareholder in a foreign corporation that was a Controlled Foreign Corporation (CFC).

Form 5471 - Category 5 Filer / CFC Reporting Requirements

Category 5 filers:
5a – Existing U.S. Shareholder (full year CFC)
5b – New U.S. Shareholder of an existing CFC
5c – Corporation becomes a CFC during the year

*CFC

Served as officer or director while a U.S. person acquired a 10% or greater interest in a foreign corporation.

Form 5471 - Information Return of U.S. Persons With Respect to Certain Foreign Corporations - Category 2 Filer

Category 2 filers are U.S. officers or directors at the time of a significant acquisition.
Obligations apply regardless of whether the officer owns any stock personally.