Tax form w-9

I’m trying to find a tax accountant that can help me, but the closest I’m finding is in London,  several hours away. I’d do in through the expat H&R block, but I’m confused with what to put on some things, and it’s not the same without face to face appointments. Not to mention, we are due to move in a few weeks so that throws a wrench in the works too. Am I going to have to let the sale fall through over this? We did have over $100,000 in the account for a brief moment and will again for seconds when we pay the house deposit. I do not have access to any of my husbands savings accounts, even the one for mine and my sons visas. I am most worried that the IRS is going to try to claim some of the money, we are putting towards buying the house, am I over thinking that?

I’m trying to find a tax accountant that can help me, but the closest I’m finding is in London,  several hours away. I’d do in through the expat H&R block, but I’m confused with what to put on some things, and it’s not the same without face to face appointments. Not to mention, we are due to move in a few weeks so that throws a wrench in the works too. Am I going to have to let the sale fall through over this? We did have over $100,000 in the account for a brief moment and will again for seconds when we pay the house deposit. I do not have access to any of my husbands savings accounts, even the one for mine and my sons visas. I am most worried that the IRS is going to try to claim some of the money, we are putting towards buying the house, am I over thinking that?

Here is a list that maybe helpful:

https://www.greenbacktaxservices.com/

https://britishamericantax.com/

http://www.ingletonpartners.com/expatriate-tax/

https://www.hrblock.com/expat-tax-preparation/

https://www.taxesforexpats.com/

https://www.usglobaltax.co.uk/

https://www.americanuktaxsolutions.com/about-us.html

http://www.americantaxreturns.co.uk/

https://www.frankhirth.com/

I had contacted taxes for expats about a highly complex issue and they responded well, I get positive reports on Greenback. You definitely need a firm that has expertise in U.S. Persons overseas. My Stateside CPA, wonderful as they are, have no idea when it comes to Americans and GC Holders overseas. With phone, skype and TEAMS consultations, you no longer need face to face. All documents are simply uploaded; there are filter questions to navigate your circumstances. These specialized firms don't just leave you to your own devices.

As it's a joint account, you effectively are a beneficiary, also you have an indirect benefit of the inheritance too. All pointing to the proper filing of the 3520 for the year in question. Even if your spouse is an NRA, you benifit, insomuch as there is a home that you will live in.

Part 4 of 3520 is easy and well within the scope of many. It's a reporting form and there is NO TAX on inheritance.

Peace of mind dictates professional help in my view. What started out as a simple W-9 has become mudded and complex.




 

Any inheritance over $100,000 needs to be declared on a 3520.

From the posts above it looks like the inheritance went to her British husband only, so if he is not a "US person" then surely he should not be expected to file a 3520. Unless the will stated that the inheritance should go to husband and wife I don't see an obligation on the wife's part. Even if the husband shared the inheritance with his wife then that would be a gift from him to her and subject only to UK gift tax law but she says he moved into his own savings account. It just happened to pass through the joint checking account hence the need for FBAR.

From the posts above it looks like the inheritance went to her British husband only, so if he is not a "US person" then surely he should not be expected to file a 3520. Unless the will stated that the inheritance should go to husband and wife I don't see an obligation on the wife's part. Even if the husband shared the inheritance with his wife then that would be a gift from him to her and subject only to UK gift tax law but she says he moved into his own savings account. It just happened to pass through the joint checking account hence the need for FBAR.

If he is an NRA and they do not elect MFJ, then no reporting on his part. The problem is however is taken from the below 3520 instructions:

You are a U.S. person who, during the current tax year,
received either:
a. More than $100,000 from a nonresident alien individual or
a foreign estate (including foreign persons related to that
nonresident alien individual or foreign estate) that you treated as
gifts or bequests

Can it be argued that the OP benefited in the 'including foreign persons related to that
nonresident alien individual'

Also:

Related Person
A related person generally includes any person who is related to
you for purposes of sections 267 and 707(b). This includes, but
is not limited to:
• A member of your family—your brothers and sisters,
half-brothers and half-sisters, spouse, ancestors (parents,
grandparents, etc.), lineal descendants (children, grandchildren,
etc.), and the spouses of any of these persons; or
• A corporation in which you, directly or indirectly, own more
than 50% in value of the outstanding stock.

Just my reading, but for a few hundred dollars to file the 2020 return, certainty with a specialist expat firm would be my way forward...

If he is an NRA and they do not elect MFJ, then no reporting on his part. The problem is however is taken from the below 3520 instructions:

You are a U.S. person who, during the current tax year,
received either:
a. More than $100,000 from a nonresident alien individual or
a foreign estate (including foreign persons related to that
nonresident alien individual or foreign estate) that you treated as
gifts or bequests

Can it be argued that the OP benefited in the 'including foreign persons related to that
nonresident alien individual'

Also:

Related Person
A related person generally includes any person who is related to
you for purposes of sections 267 and 707(b). This includes, but
is not limited to:
• A member of your family—your brothers and sisters,
half-brothers and half-sisters, spouse, ancestors (parents,
grandparents, etc.), lineal descendants (children, grandchildren,
etc.), and the spouses of any of these persons; or
• A corporation in which you, directly or indirectly, own more
than 50% in value of the outstanding stock.

Just my reading, but for a few hundred dollars to file the 2020 return, certainty with a specialist expat firm would be my way forward...

Good points, and in the same situation I would file as you suggest if only to be absolutely sure of no comebacks.

Good points, and in the same situation I would file as you suggest if only to be absolutely sure of no comebacks.

Ah, I see... Perhaps in your case durhamlad, where it's purely the 3520, then you can courier the printed PDF yourself. I don't believe that the IRS would penalise for filing and ultimately not needing to. 'The better safe than sorry', 'peace of mind' outways UPS cost and a couple hours of your time.

Thank you for all of your help, it’s definitely saved me from an awful lot of hassle and heartache! I’m rather glad I received that letter for the w9 from my bank, as I didn’t know any of the information that followed! I’m going to file through expat h&r block. I did put down how much the inheritance was and it did say I didn’t have to file anything more than an FBAR though, as the amount was under $150,000 or something in that ballpark, so is the 3520 something I should file separately, on my own, given that information?

Ah, I see... Perhaps in your case durhamlad, where it's purely the 3520, then you can courier the printed PDF yourself. I don't believe that the IRS would penalise for filing and ultimately not needing to. 'The better safe than sorry', 'peace of mind' outways UPS cost and a couple hours of your time.

Purely hypothetical in my case as all our parents and their generation are long gone and we never received any inheritance over $100k. (We each have 3 siblings)

We do file FBARs every year, and the year we bought our house in England we had to file 8938s as we briefly crossed the reporting threshold.