Overseas inheritance

[ILLMAS]

TP recieved an inheritance from a family member, the trust was created in switzerland or his held in a swiss account. The will states that the TP is to recieve an X amount of money per month, TP is a US resident, and the money she is going to recieve comes from an investment account held in switzerland, I was reading the quickfinder and it seems the TP will be responsible in paying taxes on the amount she recieves. It doesn't sound like to me that this an estate or gift tax, your thoughts?

MAS

[Pacun]

How about line 21-other income each year since she is not getting a lump-sum distribution.

[Dale in IN]

TP recieved an inheritance from a family member, the trust was created in switzerland or his held in a swiss account. The will states that the TP is to recieve an X amount of money per month, TP is a US resident, and the money she is going to recieve comes from an investment account held in switzerland, I was reading the quickfinder and it seems the TP will be responsible in paying taxes on the amount she recieves. It doesn't sound like to me that this an estate or gift tax, your thoughts?

MAS

[Dale in IN]

Mas:

Go to the IRS web site and look for form 3520, ANNUAL RETURN TO REPORT TRANSACTIONS WITH FOREIGN TRUSTS AND RECEIPT OF CERTAIN FOREIGN GIFTS. It looks to be 6 pages. And the instructions for the form is 10 pages. I think your answer might be there.

Dale in IN