In the United States—unlike Korea—the donor, not the recipient, has the obligation to file a gift tax return.

Therefore, U.S. citizens and U.S. gift-tax residents^* must file Form 709 with the IRS when they give any amount exceeding the Annual Exclusion^** to another person—regardless of nationality—including parents, children, relatives, or any other individuals.

The filing deadline is April 15 each year (or October 15 with an extension). Although the deadline coincides with the income tax return (Form 1040), Form 709 must be filed separately and submitted by mail.

^*A U.S. domicile resident (gift/estate tax resident) is someone who maintains a home in the United States and does not intend to leave the U.S. at the present time.

^**Annual Exclusion Amounts (2025)
- To a U.S. citizen spouse: Unlimited
- To a non-citizen spouse: $190,000
- To all others (e.g., children): $19,000 per recipient

*Tuition paid directly to an educational institution and medical expenses paid directly to a medical provider are not treated as gifts. However, transferring funds to a child’s bank account for tuition or living expenses is considered a gift, requiring the U.S. parent to file Form 709.

U.S. citizens, green card holders, and U.S. tax residents who receive more than $100,000^* in gifts or inheritances from a foreign person (e.g., a Korean individual) in a year must report the receipt using Form 3520.

The filing deadline is April 15 (or October 15 with extension). Form 3520 must be filed separately from Form 1040 and submitted by mail.

*Tuition or medical payments made directly to an institution are excluded from gift treatment. But funds transferred to a child’s personal account are considered gifts, and the U.S.-resident child may be required to file Form 3520.

If you receive gifts from related persons, you must aggregate the total amount received from all such related persons to determine whether the USD 100,000 annual threshold has been exceeded. “Related persons” include parents, siblings, other relatives, and spouses.
(For example, if you receive USD 50,000 from your father, USD 30,000 from your mother, and USD 30,000 from your spouse in the same year, the total of USD 110,000 will be treated as exceeding the USD 100,000 threshold, and you will be required to file Form 3520.)

★ Late-filed Form 3520 is subject to a minimum penalty of $10,000, and up to 35% of the value of the gifted/inherited assets may be assessed. Extreme caution is required.

In the United States, when a decedent’s assets are transferred through inheritance, an estate tax filing obligation may arise. In such cases, the estate must be reported to the IRS using Form 706.

Form 706 is required when the decedent’s estate exceeds the federal estate tax exclusion amount^**, and applies to individuals who were U.S. citizens or U.S.-domiciled residents^* at the time of death.

The filing deadline is nine months from the date of death, and a six-month filing extension may be requested if necessary. However, this is only an extension to file, not an extension to pay. Any estimated tax must be paid by the original due date to avoid penalties and interest.

^*A U.S.-domiciled resident for estate tax purposes is an individual who maintains a permanent home in the United States and has no present intention of leaving the country.

^**Federal Estate Tax Exclusion Amount (2025)
- $13,990,000
- Amounts exceeding the exclusion may be taxed at rates of up to 40%

Because the U.S. estate tax applies to worldwide assets, not only U.S.-situated property, it is essential to have the estate reviewed by a qualified tax professional when preparing the filing.

In the United States, when a foreign individual transfers U.S.-situated assets by way of a gift or inheritance without receiving any consideration, a U.S. gift or estate tax filing obligation may arise. In such cases, the transfer must be reported to the IRS using Form 709-NA (for gifts) or Form 706-NA (for estates).

If a foreign individual transfers assets that are not situated in the United States, U.S. gift or estate tax does not apply, and there is no U.S. filing obligation with respect to those transfers.

Form 709-NA – Filing Deadline and Annual Exclusion
- Filing deadline : April 15 of the year following the year of the gift (October 15 if an extension is filed)
- Annual exclusion : $19,000 per recipient (for 2025)
- Tax rate : Amounts exceeding the annual exclusion may be subject to U.S. gift tax at rates of up to 40%.

Form 706-NA – Filing Deadline and Exclusion Amount
- Filing deadline : Within nine months of the date of death (a six-month extension may be requested)
- Exclusion amount : $60,000 (for foreign decedents under U.S. tax law, as of 2025)
- Tax rate : Amounts exceeding the exclusion may be subject to U.S. estate tax at rates of up to 40%.

Both Form 709-NA and Form 706-NA involve complex tax procedures and legal analysis. It is strongly recommended that you consult with a qualified professional to review the details of your situation. After the consultation, we will provide a fee quote tailored to your specific circumstances.

In the United States, when a decedent’s assets are transferred through inheritance, an estate tax filing obligation may arise, and in connection with this, there are cases where Form 8971 must be filed along with the estate tax return.

Form 8971 is used to report information about the beneficiaries of inherited assets to the IRS and must be filed separately from the estate tax return itself.

Whenever there is a requirement to file Form 706 or Form 706-NA—that is, when the decedent’s gross estate exceeds the federal estate tax exclusion amount—Form 8971 must also be filed.