SEE - Special Enrollment Exam Quiz: International Reporting
14 questions · exam conditions
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International ReportingQuestion 1 of 14

A U.S. citizen, age 40, is a co-owner of a savings account at a bank in Switzerland with his brother, who is a nonresident alien. The account's highest balance in 2025 was $12,400 in May; on December 31, 2025, the balance was $4,100. He has no other foreign financial accounts. He asks whether he must file an FBAR (FinCEN Form 114) for 2025.

Which of the following is the correct response regarding his FBAR obligation for 2025?

No FBAR is required because the account balance on December 31 was below $10,000, and the May balance was temporary.
No FBAR is required because the account is owned jointly with a nonresident alien, and a U.S. citizen co-owner has no reporting duty.
An FBAR is required, and it must be filed electronically with FinCEN by April 15, 2026, with an automatic extension to October 15, 2026.
An FBAR is required, but it may be filed on paper with the taxpayer's 2025 Form 1040 by the extended due date.
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SEE - Special Enrollment Exam Quiz

SEE - Special Enrollment Exam Quiz: International Reporting

Practice International Reporting in SEE - Special Enrollment Exam with focused quiz questions that help you check what you know, review explanations, and build confidence with test-style prompts.

What this quiz covers

This quiz focuses on International Reporting, giving you a quick way to practice the rules, question types, and explanations that matter most for SEE - Special Enrollment Exam.

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Try each quiz question before looking at the correct answer. Use the explanations to review missed ideas, then come back to similar questions until the pattern feels familiar.

All questions

Question 1

A U.S. citizen, age 40, is a co-owner of a savings account at a bank in Switzerland with his brother, who is a nonresident alien. The account's highest balance in 2025 was $12,400 in May; on December 31, 2025, the balance was $4,100. He has no other foreign financial accounts. He asks whether he must file an FBAR (FinCEN Form 114) for 2025.

Which of the following is the correct response regarding his FBAR obligation for 2025?

  1. No FBAR is required because the account balance on December 31 was below $10,000, and the May balance was temporary.
  2. No FBAR is required because the account is owned jointly with a nonresident alien, and a U.S. citizen co-owner has no reporting duty.
  3. An FBAR is required, and it must be filed electronically with FinCEN by April 15, 2026, with an automatic extension to October 15, 2026. (correct answer)
  4. An FBAR is required, but it may be filed on paper with the taxpayer's 2025 Form 1040 by the extended due date.
Explanation: FinCEN Form 114 instructions (implementing 31 U.S.C. § 5314) require every U.S. person having a financial interest in, or signature authority over, a foreign financial account to file an FBAR when the aggregate value of the accounts exceeds $10,000 at any time during the calendar year. The account reached $12,400 in May, so the threshold is met even though the December 31 balance was $4,100, and co-ownership with a nonresident alien does not relieve a U.S. citizen co-owner of the reporting duty. The FBAR is filed electronically with FinCEN, not with the Form 1040, and is due April 15, 2026, with an automatic extension to October 15, 2026. Choice A misstates the test as a year-end balance test. Choice B wrongly treats co-ownership with a nonresident alien as an exemption. Choice D misstates both the filing method and the filing channel.

Question 2

A US citizen lived in Ohio until June 30, 2025, when he moved to Japan to work for a Japanese employer. He is unmarried and files as single. He does not meet the bona fide residence or the physical presence test for the foreign earned income exclusion for 2025. On December 31, 2025, his two Japanese bank accounts had a combined balance of $60,000, and their combined highest balance during 2025 was $70,000. He has no other foreign financial assets.

Which of the following correctly describes his 2025 international reporting obligations?

  1. He is treated as living abroad, so Form 8938 is not required because the accounts did not exceed $200,000 at year end; however, an FBAR is required.
  2. He must file Form 8938 because the December 31 balance exceeds the $50,000 threshold for taxpayers who are not living abroad, and he must also file an FBAR. (correct answer)
  3. No Form 8938 is required because the combined balance never exceeded $100,000, but he must file an FBAR for the accounts.
  4. Neither Form 8938 nor an FBAR is required for 2025 because he was not living abroad for the entire tax year and the accounts were opened after he moved.
Explanation: IRC § 6038D and the Instructions to Form 8938 require a specified person who is not living abroad to file when specified foreign financial assets exceed $50,000 at year end or $75,000 at any time. The higher thresholds for taxpayers living abroad apply only when the taxpayer has a tax home abroad and meets the § 911(d)(1) bona fide residence or physical presence tests; the stem states he meets neither, so the 50,000/50,000/75,000 thresholds govern. His year-end balance of $60,000 exceeds $50,000, so Form 8938 is required. The same accounts are foreign financial accounts whose aggregate value exceeded $10,000, so an FBAR is also required. Choice A wrongly applies the living-abroad thresholds. Choice C uses the $100,000 MFJ year-end threshold for an unmarried filer. Choice D ignores both obligations, which attach regardless of when during the year the accounts were opened.

Question 3

A US citizen who lives in the United States received a $25,000 cash gift in 2025 from a foreign corporation that is not her employer and for which she performs no services. She deposited the $25,000 into a newly opened bank account in Ireland on November 1, 2025, and the balance remained $25,000 through December 31, 2025. She received no other gifts from foreign persons and has no other foreign accounts.

Which of the following correctly describes her 2025 reporting obligations?

  1. She must file Form 3520 to report the gift, and she must file an FBAR to report the Irish account. (correct answer)
  2. She must file Form 3520 to report the gift, but no FBAR is required because the account was funded entirely with a gift.
  3. She must file an FBAR for the Irish account, but no Form 3520 is required because the gift does not exceed $100,000.
  4. She must file Form 3520 to report the gift, and she reports the Irish account on Form 8938 instead of an FBAR.
Explanation: IRC § 6039F and the Instructions for Form 3520, Part IV, require a US person to report purported gifts from foreign corporations or foreign partnerships that exceed $20,116 in aggregate for 2025. The $25,000 she received exceeds that amount. The IRS may treat a purported gift from a foreign corporation as income, but the reporting duty applies either way. Separately, the Irish account held $25,000, which exceeds the $10,000 aggregate maximum-value threshold for FinCEN Form 114 (FBAR), and the FBAR obligation does not depend on where the deposited money came from. Choice A is correct. Choice B wrongly exempts an account because it was funded with a gift. Choice C applies the $100,000 threshold for gifts from nonresident alien individuals to a gift from a foreign corporation. Choice D treats Form 8938 as a substitute for the FBAR; the two are separate filings, and her $25,000 of foreign assets is below every Form 8938 threshold in any case.

Question 4

A US citizen renounced his US citizenship on June 30, 2025, and became a citizen of Canada. His average annual US income tax liability for the five tax years ending before the expatriation date was $225,000. On the date of expatriation, his net worth was $1.5 million, and he certified on the required form that he had complied with all US federal tax obligations.

Which of the following is correct regarding his treatment as an expatriate for 2025?

  1. He is not a covered expatriate because his net worth is below $2 million and because he certified his compliance with federal tax obligations, so he owes no exit tax and need not file Form 8854.
  2. He is a covered expatriate because his average annual tax liability exceeds $206,000; he must file Form 8854 and pay the exit tax on his net unrealized gain to the extent it exceeds $890,000. (correct answer)
  3. He is not a covered expatriate because the certification he signed satisfies the exceptions to covered expatriate status, but he must still file Form 8854 and report his net unrealized gain.
  4. He is a covered expatriate, and the exit tax applies to his entire net unrealized gain because the $890,000 exclusion is available only to covered expatriates who are long-term residents rather than citizens.
Explanation: Under IRC § 877(a)(2), an expatriate is a covered expatriate if any one of three tests is met: average annual US income tax liability exceeds the indexed amount ($206,000 for 2025), net worth is at least $2 million, or the individual fails to certify compliance with US tax obligations. His $225,000 average tax liability exceeds $206,000, so he is covered even though his net worth is below $2 million and even though he certified compliance. Under IRC § 877A, a covered expatriate must file Form 8854 and pays a mark-to-market exit tax on net unrealized gain only to the extent it exceeds the indexed exclusion of $890,000. Choice A treats the tests as cumulative and incorrectly states that no Form 8854 is due. Choice C misunderstands the certification, which only avoids the third test. Choice D wrongly limits the $890,000 exclusion to long-term residents; it applies to covered expatriates generally.

Question 5

A US citizen moved to Brazil on February 1, 2025, to work for a Brazilian employer. He sold his US home and moved his family with him. During 2025, he was physically present in Brazil for 304 full days; the remaining days in 2025 were spent in the United States or in travel. He remained in Brazil through January 31, 2026. His 2025 wages from the Brazilian employer were below the foreign earned income exclusion limit.

Which of the following is correct regarding his eligibility to claim the foreign earned income exclusion on his 2025 return?

  1. He cannot claim the exclusion for 2025 because he was not physically present in Brazil for at least 330 full days during the 2025 calendar year.
  2. He cannot claim the exclusion unless he was a bona fide resident of Brazil for all of 2025, because the physical presence test requires presence for a full tax year.
  3. He may claim the exclusion only for the wages he earned on the 304 full days he was present in Brazil, because the exclusion is allocated under a per-day formula based on days of physical presence.
  4. He satisfies the physical presence test because the 12-month period from February 1, 2025 through January 31, 2026 includes more than 330 full days in Brazil, so wages earned in 2025 during that period qualify for the exclusion. (correct answer)
Explanation: Under IRC § 911(d)(1)(B), an individual meets the physical presence test if physically present in a foreign country at least 330 full days during any 12 consecutive months; the 12-month period may begin or end in a different tax year. From February 1, 2025 through January 31, 2026, the taxpayer was physically present in Brazil for 304 full days in 2025 plus 31 full days in January 2026, a total of 335 full days, so the test is met and the 2025 wages earned within that period are eligible for the foreign earned income exclusion, subject to the applicable statutory dollar limit. Choice A wrongly confines the test to the 2025 calendar year. Choice B wrongly treats full-year bona fide residence as required; it is an alternative test, not the physical presence test. Choice C misstates the proration, which is based on days in the qualifying 12-month period, not on days of physical presence.

Question 6

An unmarried US citizen who lives in the United States and files as single owns a bank account in Switzerland and a vacation condominium in France. On December 31, 2025, the Swiss account balance was $30,000, and its highest balance during 2025 was $35,000. The French condominium was worth $60,000 throughout 2025. She owns no other foreign financial assets.

Which of the following correctly describes whether she must file Form 8938 or an FBAR for 2025?

  1. She must file both Form 8938 and an FBAR because the combined value of her Swiss account and French condominium exceeds the Form 8938 and FBAR thresholds.
  2. She must file Form 8938, but no FBAR, because the condominium is foreign real estate and therefore the FBAR does not apply to her holdings.
  3. She must file an FBAR, but no Form 8938, because the condominium is not a specified foreign financial asset and the account value is below the Form 8938 threshold. (correct answer)
  4. She is not required to file either form because the combined value of her foreign assets is below the $200,000 threshold that applies to taxpayers living abroad.
Explanation: IRC § 6038D and the Instructions for Form 8938; for the FBAR, 31 U.S.C. § 5314 and 31 C.F.R. §§ 1010.350 and 1010.306(c). Specified foreign financial assets for Form 8938 include foreign financial accounts but not foreign real estate held directly, so the French condominium is excluded. For an unmarried taxpayer living in the United States, Form 8938 is required only when specified foreign financial assets exceed $50,000 at year end or $75,000 at any time during the year. The Swiss account was $30,000 at year end and $35,000 at its highest, so no Form 8938 is required. An FBAR (FinCEN Form 114) is required when the aggregate maximum value of foreign financial accounts exceeds $10,000 at any time during the calendar year; the Swiss account's $35,000 maximum exceeds that, so an FBAR is required. Directly held foreign real estate is not reportable on either form. Choice C is correct. Choice A is wrong because it counts the condominium, which is not reportable on Form 8938 or the FBAR; without it, the account is below the Form 8938 thresholds. Choice B reverses the result: the Form 8938 thresholds are not met, while the Swiss account alone triggers the FBAR, and the condominium does not remove that obligation. Choice D applies the $200,000 threshold for taxpayers living abroad, which does not apply to a U.S. resident, and it ignores the FBAR, whose $10,000 threshold the account exceeds.

Question 7

A US citizen worked in Germany during all of 2025 and qualified for, and elected, the foreign earned income exclusion. Her 2025 German wages were $140,000, of which $130,000 was excluded. During 2025 she paid $21,000 of German income tax on those wages. She files as single and wants to claim the foreign tax credit for the German tax.

Which of the following correctly describes the treatment of the $21,000 of German income tax on her 2025 return?

  1. She may claim the entire $21,000 as a foreign tax credit on Form 1116 because the tax was paid to a foreign country on foreign-source wages, and the exclusion does not affect the credit.
  2. She must claim the $21,000 as an itemized deduction on Schedule A instead of claiming a credit, because a taxpayer who uses the foreign earned income exclusion cannot claim the foreign tax credit.
  3. The $1,500 of German tax attributable to the included wages is eligible for the foreign tax credit on Form 1116, and the remaining $19,500 may be carried forward as a foreign tax credit carryover.
  4. The $1,500 of German tax attributable to the included wages is eligible for the foreign tax credit on Form 1116; the remaining $19,500, attributable to the excluded wages, may not be credited, deducted, or carried over. (correct answer)
Explanation: IRC § 911(d)(6) disallows a deduction or credit for foreign income taxes paid with respect to amounts excluded under § 911, and Treas. Reg. § 1.911-6 allocates the taxes between excluded and included earned income. Of the $21,000 of German tax, $21,000 × 130,000/140,000 = $19,500 is attributable to the excluded wages and may not be credited, deducted, or carried over. The remaining $1,500 is attributable to the included wages and is eligible for the foreign tax credit on Form 1116, subject to the usual § 904 limitation (and, if not currently usable, to the foreign tax credit carryover rules). Choice A would allow a credit for taxes on the excluded income. Choice C wrongly treats the disallowed portion as a carryover. Choice B wrongly assumes the FEIE forces an itemized deduction and ignores that § 911(d)(6) also bars the deduction for taxes on excluded income.

Question 8

Marta, a U.S. citizen, was a bona fide resident of Costa Rica for all of 2025 and elected the foreign earned income exclusion. In 2025 she received $142,000 in salary for services performed in Costa Rica, $6,000 of interest from a Costa Rican bank, and $9,000 of dividends from a foreign corporation. What amount of this foreign income is includible in her 2025 U.S. gross income?

  1. $15,000
  2. $21,000
  3. $27,000 (correct answer)
  4. $157,000
Explanation: Governing authority: IRC § 911(a), (b)(2)(D). Before the exclusion, Marta's foreign income is 157,000(157,000 (142,000 salary + $6,000 interest + $9,000 dividends). The foreign earned income exclusion for 2025 is limited to $130,000 of foreign earned income. The salary is foreign earned income, so $130,000 is excluded and the remaining $12,000 of salary is included. The interest and dividends are not foreign earned income, so the entire $15,000 is included. Total includible income = $12,000 + $6,000 + $9,000 = 27,000.ChoiceA(27,000. Choice A (15,000) excludes the full salary without applying the 130,000capandincludesonlytheinvestmentincome.ChoiceB(130,000 cap and includes only the investment income. Choice B (21,000) includes the remaining $12,000 salary and the $9,000 dividends but omits the 6,000interest.ChoiceD(6,000 interest. Choice D (157,000) is the pre-exclusion total and ignores the exclusion entirely.

Question 9

Rosa, an unmarried U.S. citizen living in the United States, is required to file a 2025 U.S. income tax return. During 2025, her only specified foreign financial assets were two foreign financial accounts. The combined value of the two accounts was $50,000 on December 31, 2025, and their highest combined value during the year was $74,000. She received no foreign gifts and had no reportable transactions with a foreign trust. How many of the following must she file for 2025: FBAR (FinCEN Form 114), Form 8938, and Form 3520?

  1. 0
  2. 1 (correct answer)
  3. 2
  4. 3
Explanation: Governing authority: 31 U.S.C. § 5314; 31 CFR § 1010.350; IRC §§ 6038D, 6039F, and 6048. The FBAR is required if the aggregate value of foreign financial accounts exceeded $10,000 at any time during the calendar year. Rosa's accounts reached $74,000, so the FBAR must be filed. Form 8938 is required of an unmarried U.S.-resident filer only if the aggregate value of specified foreign financial assets is more than $50,000 on the last day of the year or more than $75,000 at any time during the year. Rosa's year-end value was exactly $50,000—not more than $50,000—and the year's high of $74,000 did not exceed 75,000,soForm8938isnotrequired.Shereceivednoforeigngiftsandhadnoreportabletransactionswithaforeigntrust,soForm3520isnotrequired.Thereforeexactlyoneform—theFBAR—mustbefiled.ChoiceA(0)missestheFBARrequirement.ChoiceC(2)treatstheexactly−75,000, so Form 8938 is not required. She received no foreign gifts and had no reportable transactions with a foreign trust, so Form 3520 is not required. Therefore exactly one form—the FBAR—must be filed. Choice A (0) misses the FBAR requirement. Choice C (2) treats the exactly-50,000 year-end balance as satisfying Form 8938's 'more than $50,000' test; equality with the threshold does not trigger Form 8938. Choice D (3) assumes all three forms are required despite the Form 8938 thresholds not being met and the absence of reportable foreign gifts or foreign trust transactions.

Question 10

Mina, a U.S. citizen, was a bona fide resident of Japan for all of 2025 and her tax home was in Japan. She had $150,000 of foreign earned income from her Japanese employer and paid $30,000 of Japanese income tax on that income. She is single and has no other income.

If Mina chooses to claim the foreign earned income exclusion for 2025, which of the following is correct?

  1. She may exclude the entire $150,000 on Form 2555, and none of the Japanese income tax is eligible for the foreign tax credit.
  2. She may exclude $130,000 on Form 2555; the remaining $20,000 is included, and only taxes allocable to that amount may be credited. (correct answer)
  3. She may exclude the entire $150,000 because the $130,000 annual ceiling applies only to wages, not to other forms of foreign earned income.
  4. She must include all $150,000 in gross income because the foreign earned income exclusion is available only to taxpayers who also claim the foreign tax credit.
Explanation: IRC § 911; IRC § 904. For 2025, the foreign earned income exclusion ceiling is $130,000. Because Mina was a bona fide resident of Japan for the entire year, the ceiling is not prorated. The remaining $20,000 of foreign earned income is included in gross income. Under IRC § 911(d)(6), foreign taxes on income excluded under § 911 are neither deductible nor creditable; taxes allocable to the remaining $20,000 may be creditable, subject to the § 904 limitation. Choice A is wrong because the exclusion cannot exceed $130,000 and some of the Japanese tax may be allocable to the non-excluded $20,000. Choice C is wrong because the $130,000 ceiling applies to all foreign earned income, not only wages. Choice D is wrong because the exclusion is elective and does not require claiming the foreign tax credit; the credit is a separate relief that cannot be used for the excluded income.

Question 11

Which of the following is correct regarding the 2025 Form 8938 filing thresholds for a taxpayer's specified foreign financial assets?

  1. A married taxpayer filing separately who lives in the United States must file when, and only when, the aggregate value of the specified foreign financial assets was more than $50,000 on the last day of the tax year or more than $75,000 at any time during the year. (correct answer)
  2. A married taxpayer filing separately who lives in the United States must file when, and only when, the aggregate value of the specified foreign financial assets was more than $100,000 on the last day of the tax year or more than $150,000 at any time during the year.
  3. An unmarried taxpayer living abroad must file when, and only when, the aggregate value of the specified foreign financial assets was more than $400,000 on the last day of the tax year or more than $600,000 at any time during the year.
  4. A married taxpayer filing jointly who lives abroad must file when, and only when, the aggregate value of the specified foreign financial assets was more than $200,000 on the last day of the tax year or more than $300,000 at any time during the year.
Explanation: IRC § 6038D; Form 8938 instructions. For 2025, the Form 8938 thresholds are: U.S. residents — unmarried or MFS, more than $50,000 at year-end or more than $75,000 at any time; MFJ, more than $100,000 at year-end or more than $150,000 at any time. For taxpayers living abroad — unmarried or MFS, more than $200,000 at year-end or more than $300,000 at any time; MFJ, more than $400,000 at year-end or more than $600,000 at any time. Choice A correctly states the U.S.-resident MFS threshold. Choice B misstates the amount by using the U.S.-resident MFJ thresholds. Choice C misstates the amount by using the living-abroad MFJ thresholds for an unmarried taxpayer. Choice D misstates the amount by using the living-abroad unmarried/MFS thresholds for a married taxpayer filing jointly. Form 8938 is filed with the income tax return, not with FinCEN.

Question 12

Hal, a U.S. citizen, renounced his citizenship in 2025. He certified that he had complied with all federal tax obligations. For the five tax years ending before his expatriation, Hal's average annual net income tax was $215,000.

Which of the following statements is correct regarding Hal's treatment as a covered expatriate?

  1. Hal is not a covered expatriate because his certification of compliance with federal tax obligations means that none of the covered expatriate tests apply to him.
  2. Hal is not a covered expatriate because the average annual net income tax test applies only to long-term residents who relinquish lawful permanent residence, not to U.S. citizens.
  3. Hal is a covered expatriate because his average annual net income tax exceeded $206,000, and he must file Form 8854 to report his expatriation. (correct answer)
  4. Hal is a covered expatriate, so he must file FinCEN Form 114 rather than Form 8854, and the expatriation tax is imposed on his entire net worth.
Explanation: IRC § 877A(g); Form 8854 instructions. For 2025, a covered expatriate includes a U.S. citizen who relinquishes citizenship and whose average annual net income tax for the five tax years ending before expatriation exceeds $206,000. Hal's average of 215,000satisfiesthetest,soheisacoveredexpatriateandmustfileForm8854.ChoiceBiswrongbecausetheaveragetaxtestappliestocitizenswhoexpatriate,notonlytolong−termresidents.ChoiceAiswrongbecausecertificationofcomplianceonlyaddressesthecertificationtest;thetax−basedteststillapplies.ChoiceDiswrongbecausethefilingisonForm8854,notFinCENForm114,andtheexpatriationtaxisamark−to−markettaxonnetunrealizedgainabovethe§877Aexclusion(215,000 satisfies the test, so he is a covered expatriate and must file Form 8854. Choice B is wrong because the average tax test applies to citizens who expatriate, not only to long-term residents. Choice A is wrong because certification of compliance only addresses the certification test; the tax-based test still applies. Choice D is wrong because the filing is on Form 8854, not FinCEN Form 114, and the expatriation tax is a mark-to-market tax on net unrealized gain above the § 877A exclusion (890,000 for 2025), not a tax on all net worth.

Question 13

Rafael, a U.S. citizen who lives in Arizona, is unmarried. In 2025 he had a checking account in Mexico. Its balance was $58,000 on December 31, 2025 and $96,000 on June 30, 2025. The account earned $300 of interest in 2025.

Which of the following statements is correct regarding Rafael's 2025 reporting obligations?

  1. Rafael must file Form 8938 with his 2025 Form 1040 because the account balance exceeded $50,000 on the last day of the year, and he must also file FinCEN Form 114 with FinCEN because the account exceeded $10,000 at any time during 2025. (correct answer)
  2. Rafael must file only FinCEN Form 114 with his Form 1040 by April 15, 2026, and he is not required to file Form 8938 because the account balance did not exceed $100,000 on the last day of the year.
  3. Rafael must file Form 8938 with FinCEN and FinCEN Form 114 with the IRS, because the IRS treats a properly filed FinCEN Form 114 as satisfying the Form 8938 reporting requirement.
  4. Rafael must file only Form 8938 with his Form 1040, because the FinCEN reporting requirement applies only to foreign accounts that produced more than $10,000 of income during 2025.
Explanation: FinCEN Form 114 instructions; 31 U.S.C. § 5314; IRC § 6038D. The unmarried-resident Form 8938 threshold is more than $50,000 on the last day of the tax year or more than $75,000 at any time during the year; Rafael's year-end balance of $58,000 meets it. The FBAR threshold is more than $10,000 at any time, without regard to income. Choice A correctly states both obligations. Choice B misstates the FBAR filing method and the Form 8938 threshold. Choice C swaps the filing destinations and wrongly treats Form 114 as satisfying Form 8938. Choice D invents an income requirement for FBAR. FinCEN Form 114 is due April 15 with an automatic extension to October 15 and is filed electronically with FinCEN; Form 8938 is filed with the income tax return.

Question 14

Giselle, a U.S. citizen, received $15,000 in cash from a foreign corporation in April 2025 and an additional $10,000 in cash from the same foreign corporation in November 2025. She received no other foreign gifts during 2025.

Which of the following statements is correct regarding Giselle's obligation to report these gifts?

  1. Giselle must report the gifts on Schedule B of Form 1040 because a U.S. citizen must report all gifts received from foreign corporations on that schedule.
  2. Giselle is not required to report the gifts because each individual gift was below the $20,116 reporting threshold.
  3. Giselle must report the gifts on Form 8938 because their total value exceeds the threshold for specified foreign financial assets.
  4. Giselle must report the gifts on Form 3520 because the aggregate amount received from the foreign corporation exceeded $20,116. (correct answer)
Explanation: IRC § 6039F; Form 3520 instructions. A U.S. person must report purported gifts received from a foreign corporation on Form 3520 when the aggregate amount from that source exceeds $20,116 for 2025. The threshold applies to the total received from that source during the year, not separately to each gift, and Giselle received $25,000. Choice D is correct. Choice B ignores the aggregation rule. Choice C names the wrong form: Form 8938 reports specified foreign financial assets that a taxpayer holds, not gifts received. Choice A names the wrong form: Schedule B is not the reporting vehicle for foreign gifts.