The Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts or Form 3520 is an informational return in which U.S. taxpayers report transactions with certain foreign trusts, ownership of foreign trusts, and receipts of large gifts from foreign entities. 

You are only required to file the Form 3520 if you received: 

• A gift of more than $100,000 from a foreign person or estate
• A gift of more than $15,601 from a foreign partnership or corporation

What are the types of transactions with a foreign trust that I need to report?

• If you transfer any assets (money and property, for example) to a foreign trust
• You receive direct or indirect distributions from a foreign trust
• You have a qualified obligation as the responsible party to report a reportable event during your current tax year