Thousands of Vietnamese-Americans receive money from parents and relatives back home to buy a house, purchase a nail salon, or start a business — and have no idea the IRS requires mandatory reporting. The result: a penalty up to 35% of every dollar received, a frozen bank account, or a federal money-laundering investigation. All from one missing form.
The IRS does not accept “I didn’t know” to waive penalties. Whether the transfer is a gift or a loan from family abroad, if the total exceeds $100,000 in a calendar year you must file Form 3520. Filing incorrectly or not filing at all carry the same penalty.
Tell us your situation. A compliance specialist will reach out within 24 hours with a step-by-step plan — in English or Vietnamese.
Our Form 3520 compliance team will reach out within 24 hours with a clear action plan.
One owner didn’t know the rules. One called Netfintax first. Same money, same family — but the outcome couldn’t be more different.
The IRS doesn’t just tax income — it requires reporting when you receive large sums from abroad. These four rules affect most Vietnamese-American families.
If you receive more than $100,000 in total from one or more foreign persons — including family in Vietnam — Form 3520 is legally required with your annual tax return. No exceptions.
The most common misunderstanding: you owe no income tax on a family gift, but you are still required to report it via Form 3520. No reporting = penalty, regardless of any tax liability.
A “loan” without a formal agreement will be treated by the IRS as a disguised gift — same penalties apply. The agreement must include interest at or above the IRS Applicable Federal Rate (AFR).
U.S. banks automatically report all transactions over $10,000 to FinCEN. The IRS cross-references this with your tax filings. A missing Form 3520 will be flagged.
of the total amount received — per violation. Receive $500,000 and fail to file, and you could face a penalty of $175,000 or more, plus interest from the original due date.
From preparing documents before the wire is sent, to filing Form 3520 with the IRS Netfintax handles the entire compliance process.
We review your transfer plan and identify your exact reporting obligations before any money moves — no surprises after the fact.
We draft a Gift Letter with all required IRS and bank disclosures — notarized if needed, properly documenting the source and nature of funds.
We draft a formal Loan Agreement with IRS-compliant interest under the Applicable Federal Rate — preventing reclassification as a taxable gift.
We prepare and submit Form 3520 with your annual tax return — complete, correct, never late. Every line reviewed by our compliance team.
We advise you on how to notify your bank before the transfer arrives — reducing the risk of account holds or suspicious activity reports.
Every explanation, document, and consultation is available entirely in Vietnamese — so nothing gets lost in translation when the stakes are this high.
We’ve helped hundreds of Vietnamese-American families receive funds from Vietnam safely and legally — keeping every dollar out of IRS penalty territory. Most clients come to us before the transfer, which is exactly the right time.
For those who come to us after receiving funds without filing, we handle late-filing submissions and IRS penalty abatement requests — with a strong track record of reducing or eliminating first-time penalties.