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Tax guidelines and regulations for large money transfers into US

Failing to file could land you in hot water with the IRS.

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If you’re planning to transfer more than $10,000 from overseas, a money transfer service can help you save on fees — but you still need to report the transfer to the US government. Read on to familiarize yourself with the tax implications and what you need to do when transferring large amounts of cash – and what the penalties could be if you don’t.

Do I have to report large transfers into the US?

Yes. No matter where you’re from, if you’re receiving more than $10,000 in the US, you’ll need to abide by US laws put in place to both protect both your money and the interests of the government.

By law, banks report all cash transactions that exceed $10,000 — the international money transfer reporting limit set by the IRS. In addition, a bank may report any transaction of any amount that alerts its suspicions. Money transfer businesses, which often solely send money between countries, sometimes have reporting thresholds as low as $1,000.

US law requires banks and money transfer companies to report:

  • Your name and contact information.
  • The name and contact information of the person who sent you the money.
  • If it’s a bank transfer, the financial details of the recipient, including SWIFT code.
  • Your banking details, including your bank account number.
  • The amount you received.

Compare providers for your next large transfer to the US

Our table lets you compare the services you can use to send money abroad. Compare services on transfer speeds and fees, then click Go to site when you're ready to send.
1 - 14 of 14
Name Product Filter Values Fastest Transfer Speed Fees (Pay by Bank Transfer)
OFX
24 hours
$0
OFX has no maximum limit transfers, with competitive exchange rates for 45+ currencies.
CurrencyTransfer
24 hours
$0
CurrencyTransfer lets you shop around for the best exchange rate on its online marketplace.
Wise (TransferWise)
Within minutes
From 0.41%
Wise uses the mid-market rate and transparent fees to help you send money in 45+ currencies.
OFX International Money Transfers (Business)
24 hours
$0
Business customers: Send safe, no-limit transfers with no fees and competitive exchange rates.
CurrencyTransfer for Business
24 hours
$0
Increase business efficiency with zero transaction fees and same-day transfers.
Currencies Direct
24 hours
$0
CurrenciesDirect makes transferring money abroad simple with bank-beating exchange rates. Currencies Direct may call you to confirm your transfer, so be prepared for a phone call shortly after initiating a transfer.
Currencies Direct (business)
24 hours
$0
Minimizes costs of international transactions and offers custom solutions for business clients. Currencies Direct may call you to confirm your transfer, so be prepared for a phone call shortly after initiating a transfer.
Xe
Within minutes
$3
Xe has fast transfers with low fees and a range of foreign currency tools.
Xe Money Transfer for Business
24 hours
$0
Save your time and money with Xe Money Transfer for business.
MoneyGram
Within minutes
From $0
First online transfer is free.
MoneyGram has fast cash pick-up transfers to more than 350,000 agent locations worldwide.
Cash App
Within minutes
From $0
With this peer-to-peer payment app make payments to your friends and family with no transfer fees within the US or from the US to the UK or EU.
Instarem
24 hours
From 0%
New Instarem customers will get a special FX rate and zero-fees on their first transfer.
Instarem offers offers rewards on every transaction.
Western Union
Within minutes
From $0
Enjoy $0 fee on your first online transfer. Western Union makes money from currency exchange. Not valid on credit cards or sends to Cuba.
Western Union sends money online to friends and family in 200+ countries and territories around the world.
Airwallex
Airwallex
Within minutes
$0
After spending $15k in your first 90 days, receive a one-time $500 bonus that will automatically be credited to your account on any FX conversion.
Airwallex can help you make business payments to 150+ countries in 60+ currencies.
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Who is most likely to be researching receiving a large transfer from outside the US?

Finder data suggests that men aged 35-44 are most likely to be researching this topic.

ResponseMale (%)Female (%)
65+5.70%3.81%
55-647.67%5.37%
45-5411.44%6.85%
35-4414.59%8.74%
25-3414.00%7.98%
18-248.52%5.31%
Source: Finder sample of 18,091 visitors using demographics data from Google Analytics in January 2024

Documents specific to sending large amounts into the US

If you are living in the US and received foreign gifts of money or other property, you’ll need to report it on Form 3520 — Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts.

US citizens and residents are required to use Form 3520 for:

  • Gifts or bequests valued at more than $100,000 from a non-resident alien individual or foreign estate.
  • Gifts of $17,339 or more from foreign corporations or foreign partnerships (including from people related to these corporations or partnerships).

Form 3520 is considered an “information return,” rather than a tax return, because foreign gifts generally are not subject to income tax. However, you are subject to stiff penalties for failing to submit Form 3520 when it is required.

Who is responsible for filing Form 3520 — me or the person who sent the money?

As the recipient of the transfer, you are solely responsible for reporting the amount you received during the current tax year with your annual tax filing.

The penalties for failing to file Form 3520 on time are equal to the greater of $10,000 or the following:

  • 35% of the gross value of the distributions received from a foreign trust.
  • 5% of the gross value of the portion of the amount treated as owned by you.
  • A separate 5% penalty if you fail to furnish correct required information.

Why is the US government interested in how much I receive?

Laws are in place to protect you and the government from fraudulent activity. By monitoring transactions in and out of the US, authorities are able to:

  • Protect your sensitive information.
  • Lower the risk of illegal and fraudulent transfers.
  • More clearly identify money laundering schemes.
  • Inhibit the ease of sheltering taxes in untraceable offshore accounts.

Since 9/11, the US government has put even more stringent laws in place. For example, the Patriot Act allows the government to track money more carefully due to terrorism.
International money transfers that won’t break your business

What should I expect when receiving money from overseas?

To prevent the US government from delaying or canceling your money transfers into the country, you’ll need to provide proof of a government-issued photo ID — a driver’s license or passport, for example — and proof of your address.

If you already own an account with the bank or money transfer company, you may not need to provide ID each time you receive money. However, online money transfers may have stricter rules when it comes to proof of ID and could ask for additional documentation or to verify your identity by phone.

To avoid the penalties that come with a failure to report large sums of money into the country, it may be worth it to speak to a tax lawyer to make sure that everything is above board and complies with the laws of all countries involved.
Sending a lot out of the country? Know what the IRS expects of you

Bottom line

Receiving large money transfers while in the United States almost always need to be reported to the IRS, failing to do so could lead to a fine or worse. It may be tempting to think you can slip through the cracks and save money, but the fines far outweigh the benefits. Instead, learn how to save money on your next transfer to help offset the overall cost of the taxes you may owe.

Frequently asked questions

Whether products shown are available to you is subject to individual provider sole approval and discretion in accordance with the eligibility criteria and T&Cs on the provider website.

Name Product Filter Values Fastest Transfer Speed Fees (Pay by Bank Transfer)
OFX International Money Transfers (Business)
24 hours
$0
Business customers: Send safe, no-limit transfers with no fees and competitive exchange rates.
Xe
Within minutes
$4
Xe has fast transfers with low fees and a range of foreign currency tools.
MoneyGram
Within minutes
From $0
First online transfer is free.
MoneyGram has fast cash pick-up transfers to more than 350,000 agent locations worldwide.
Instarem
24 hours
From 0%
New Instarem customers will get a special FX rate and zero-fees on their first transfer.
Instarem offers offers rewards on every transaction.
Xe Money Transfer for Business
24 hours
$0
Save your time and money with Xe Money Transfer for business.
Remitly
Within minutes
From $0
Remitly has quick, affordable transfers around the world, with both express and economy options.
CurrencyTransfer
24 hours
$0
CurrencyTransfer lets you shop around for the best exchange rate on its online marketplace.
WorldRemit - 4free
Within minutes
From $0.99
Use promo code 3FREE and pay no fees on your first 3 transfers. Conditions apply.
WorldRemit sends money to 110+ countries for bank-to-bank deposits, cash pick-ups or mobile top-ups.
OFX
24 hours
$0
OFX has no maximum limit transfers, with competitive exchange rates for 45+ currencies.
PayPal (business)
Within minutes
$0
Provides business solutions for small business owners in over 24 currencies worldwide. Try 3 months free of Spotify Premium when you sign up with PayPal.
Wise (TransferWise) International Money Transfers Business
Within minutes
From $8.16
Enjoy high maximum transfers into more than 20 currencies, while saving up to 90% over local banks.
Wise (TransferWise)
Within minutes
From 0.41%
Wise uses the mid-market rate and transparent fees to help you send money in 45+ currencies.
Wise (TransferWise)
Within minutes
From 0.41%
Wise uses the mid-market rate and transparent fees to help you send money in 45+ currencies.
CurrencyTransfer for Business
24 hours
$0
Increase business efficiency with zero transaction fees and same-day transfers.
WorldRemit
Within minutes
From $0.99
Use promo code 3FREE and pay no fees on your first 3 transfers. Conditions apply.
WorldRemit sends money to 110+ countries for bank-to-bank deposits, cash pick-ups or mobile top-ups.
CurrencyFair
24 hours
€3
CurrencyFair has bank-beating exchange rates and fast transfer times on 15+ popular currencies.
OFX
24 hours
$0
OFX has no maximum limit transfers, with competitive exchange rates for 45+ currencies.
CurrencyFair
24 hours
€3
CurrencyFair has bank-beating exchange rates and fast transfer times on 15+ popular currencies.
Remitly
Within minutes
From $0
Special offers like free transfers and better exchange rates available for new customers.
Remitly has quick, affordable transfers around the world, with both express and economy options.
Remitly
Within minutes
From $0
Special offers like free transfers and better exchange rates available for new customers.
Remitly has quick, affordable transfers around the world, with both express and economy options.
Remitly
Within minutes
From $0
Special offers like free transfers and better exchange rates available for new customers.
Remitly has quick, affordable transfers around the world, with both express and economy options.
PayPal
Within minutes
From $0
Use PayPal to safely send money and receive payments from around the world in over 25 currencies with just an email address or mobile number. Try 3 months free of Spotify Premium when you sign up with PayPal.
Xe
Within minutes
$3
Xe has fast transfers with low fees and a range of foreign currency tools.
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36 Responses

    Default Gravatar
    BobDecember 17, 2019

    If someone is expecting $150,000+ as an inheritance wired from abroad, what documents would be necessary to provide for the government? Also, this is an early/living inheritance.

      Default Gravatar
      nikkiangcoDecember 19, 2019

      Hi Bob,

      Thanks for your comment and I hope you are doing well. No matter where the money is coming from, when you receive money that is over $10k, you would need to report that to the government. Also, you would need to accomplish the fgorm 3520 — Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts. As it says on the page, US citizens and residents are required to use Form 3520 for:

      – Gifts or bequests valued at more than $100,000 from a nonresident alien individual or foreign estate.
      – Gifts of $15,601 or more from foreign corporations or foreign partnerships (including from people related to these corporations or partnerships).

      Form 3520 is considered an “information return,” rather than a tax return, because foreign gifts generally are not subject to income tax. However, you are subject to stiff penalties for failing to submit Form 3520 when it is required.

      Hope this helps and feel free to reach out to us again for further assistance.

      Best,
      Nikki

    Default Gravatar
    NitinNovember 11, 2019

    If I transfer say $10,000 from India into my son’s bank A/C in US to repay car loan. Will that money be taxable?

      Default Gravatar
      nikkiangcoNovember 11, 2019

      Hi Nitin,

      Thanks for getting in touch! Any transfers for any purpose that would be at $10,000 and over will attract taxes.

      US law requires banks and money transfer companies to report:

      Your name and contact information.
      The name and contact information of the person who sent you the money.
      If it’s a bank transfer, the financial details of the recipient, including SWIFT code.
      Your banking details, including your bank account number.
      The amount you received.

      To avoid the severe penalties that come with a failure to report large sums of money into the country, speak with a professional to guarantee that everything is above board and complies with the laws of all countries involved.

      Hope this helps and feel free to reach out to us again for further assistance.

      Best,
      Nikki

    Default Gravatar
    JayOctober 7, 2019

    Hi,
    I am a US citizen living overseas, I report my income every year accordingly. My question is as folllow;
    Friends and family sometimes deposit money into my US account while I deposit the exact equivalent in local currency based on the rate that day into their foreign bank account or to their family members account. So, Basically, instead of them going through the bank to transfer money to their family member overseas, they just deposit into my US account and I deposit the equivalent with local currency at their foreign bank account.
    Please let me know.
    Thanks,
    Jamal

      Default Gravatar
      nikkiangcoOctober 8, 2019

      Hi Jay,

      Thanks for getting in touch! It’s totally fine for your family members to deposit money into your account and you depositing it to their bank account. However, if you’re receiving more than $10,000, you’ll need to abide by US laws put in place to both protect your money and protect the interests of the government. If it exceeds, make sure you comply with the documents needed in sending larger amounts of money.

      Hope this helps!

      Best,
      Nikki

    Default Gravatar
    CostaJuly 21, 2019

    I’m not a US Citizen and very recently became a US resident and now would like to transfer my life savings from a foreign bank account under my name to my US bank account. These savings come mainly from my employment overseas which was not taxed by IRS. Do I still need to report it and how to do that / what form should I use?

      AvatarFinder
      fayemanuelJuly 22, 2019Finder

      Hi Costa,

      Thanks for contacting Finder.

      If you already have an active US bank account, you don’t have do provide anything to wire your life savings from a foreign bank account to your US bank. The bank may be asking you more info on this large sum of money and will be reporting this to the IRS. However, you are responsible for reporting the amount you received during the current tax year with your annual tax filing that’s when you need to submit form 3520 to the IRS.

      I hope this helps.

      Kind Regards,

      Faye

    Default Gravatar
    RickJuly 3, 2019

    I and my fiance habe an inheritence of gold in Ghana we need to pay the tax and insurance and they will not let hher leave the country until we do and it is not safe there for het

      AvatarFinder
      BellaJuly 5, 2019Finder

      Hi Rick,

      Thanks for your inquiry.

      While we’re unsure about your specific situation. It is best to get in touch with a lawyer to give you a personalized answer and further assistance since your issue is a bit complicated.

      I hope it helps.

      Kind regards,
      Bella

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