APPLICABLE FEDERAL RATES (AFRs)
Each month, the IRS provides various prescribed rates for federal income tax purposes. You can find the most up to date AFRs using the link below:
ANNUAL INFLATION ADJUSTED NUMBERS FOR THE 2025 CALENDAR YEAR
Unified Transfer Tax Exclusion: $13,990,000.00
Annual Exclusion for Gifts: $19,000.00
Annual Exclusion for Gifts to Non-U.S. Citizen Spouse: $190,000.00
Annual Reportable Exclusion for Large Gifts from Foreign Corporations or Foreign Partnerships: $20,116.00 (aggregate value)
Please use the link below for the IRS Proclamation regarding inflation adjusted numbers for the 2025 calendar year.
IMPORTANT ESTATE AND GIFT TAX NUMBERS
Annual Reportable Exclusion for Large Gifts from Foreign Persons or Estates: $100,000.00
Penalty for Failure to File Form 3520 or Form 3520-A (Large Gifts to/from Foreign Persons or Estates):
- 35% of contributions to a Foreign Trust (Form 3520)
- 35% of distributions received from a Foreign Trust (Form 3520)
- 5% of end-of-tax year value of the gross assets of a Foreign Grantor Trust (Form 3520 and Form 3520-A)
- Up to 25% for failure to report a gift or inheritance from a foreign person (Form 3520)
Lifetime Estate Tax Exclusion for Non Resident Aliens (NRA) for U.S. Situs Property: $60,000.00
Estate or Gift Tax Rate on Taxable Estate or Gift: 40%
IMPORTANT FILING DEADLINES
Due date for Form 3520-A (If Grantor-Owner is a U.S. Person): March 15th (Extended to September 15 by filing Form 7004)
Due Date for Form 3520: Due date of Taxpayer’s Income Tax Return (usually April 15th)
FBAR Filing Deadline (FinCen 114): Due date of Taxpayer’s Income Tax Return (usually April 15th) with an automatic extension to October 15th