Hello, I transferred some amount to a foreign bank account in the current tax year and I am unsure if I should be filing the form 3520. Does this form need to be filled out irrespective of how large or small the actual transferred amount is? Or does it need to be filled out only if the transferred amount is above some limit? (like the TD F 90-22.1 which requires only interest above 10,000 dollars to be reported). Any advice will be appreciated! Thanks in advance!
IRS Form 3520 is for a foreign trust or for the receipt of a gift from a foreign estate or trust. It is not for reporting that you opened a foreign bank account.
I agree with Mr. Givner. I also notice you said "requires interest above $10,000" be reported on the FBAR. I just want to make clear this $10,000 threshold refers to a cumulative amount held in all your foreign accounts. I am not sure whether you meant interest as ownership rights or interest as in the income accrued on the principal deposited.
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