Here’s what HIVE AI had to say about “Are there changes for reporting gifts to non-US persons?”:

U.S. donors making gifts to non‑U.S. persons

• There’s no special change to gift tax reporting just because the recipient is a non‑U.S. person. U.S. gift tax is donor‑based: you file Form 709 for taxable gifts in the same way you would for gifts to U.S. persons. Gift‑splitting still requires both spouses to be U.S. citizens or residents; if either spouse isn’t, each spouse files their own return and cannot split gifts. 1
• Gifts to a spouse who is not a U.S. citizen do not qualify for the unlimited marital deduction; instead, a special higher annual exclusion applies under section 2523(i). 2

What did change (but not specific to gifts)

• The One Big Beautiful Bill raised the general information‑reporting threshold under section 6041 (for payers reporting certain payments) from $600 to $2,000 for payments made after December 31, 2025, with future inflation adjustments. This is an information‑return change for payers and doesn’t alter gift tax reporting on Form 709. 3

If you meant gifts received from non‑U.S. persons (inbound)

Form 3520 reporting thresholds

• U.S. recipients must report large foreign gifts/bequests on Form 3520, Part IV, if thresholds are exceeded. Generally:
  • From a nonresident alien individual or foreign estate: report when total received during the year exceeds $100,000; identify each gift over $5,000.
  • From foreign corporations or partnerships: report when total from all such entities exceeds the annually indexed threshold ($19,570 for 2024). 4
• Timing and mechanics (proposed regulations): report on Form 3520 by the due date described; thresholds and special rules are detailed in the proposed §1.6039F‑1 (including separate thresholds per spouse on joint returns). 5

Covered expatriate gifts (section 2801)

• Separate rules for “covered gifts or bequests” from covered expatriates will require reporting once the section 2801 regulations fully apply; the reporting threshold for those covered gifts is tied to the annual per‑donee gift tax exclusion for the year. Final regulations confirm the reporting applies to U.S. persons as defined in section 7701(a)(30). 6

Trust‑related nuances when the donor is foreign

• If a U.S. person receives a distribution from a foreign trust, it’s reported in Part III of Form 3520, not as a “foreign gift” in Part IV. Certain domestic trusts may also have reporting when they receive contributions from foreign persons. 7

Penalties

• Failing to file or filing an incomplete Form 3520 can trigger significant penalties. The IRS highlights steep penalty regimes for foreign trust and foreign gift reporting. 8

What to do next

• If you’re a U.S. person making gifts to non‑U.S. recipients: continue filing Form 709 as usual; apply the special non‑citizen spouse rules where relevant; you cannot use gift‑splitting unless both spouses are U.S. citizens or residents. 1
• If you’re a U.S. person receiving gifts from non‑U.S. persons: monitor whether you cross the Form 3520 thresholds and file by the due date; keep documentation identifying donors and amounts to apply the aggregation rules correctly. 4

Sources

1 – IRS.gov – Frequently asked questions on gift taxes for nonresidents not citizens of the United States 📄 Summarize
2 – IRC § 2523(i) 📄 Summarize
3 – One Big Beautiful Bill Act Sec. 70433. Increase in threshold for requiring information reporting with respect to certain payees 📄 Summarize
4 – IRS.gov – Large gifts or bequests from foreign persons 📄 Summarize
5 – REG-124850-08 📄 Summarize
6 – T.D. 10027 📄 Summarize
7 – IRS – Instruction 3520 Instructions for Form 3520, Annual Return to Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts 📄 Summarize
8 – IRS.gov – International information reporting penalties 📄 Summarize

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