Context: My parents overseas (Japan) sent me a little over $100,000 to cover an expensive tuition payment and moderate living expenses in 2014. They are not US residents, Green card holders or citizens. They did not remit the tuition payment directly to the school. I am a resident (for tax).
If I understand correctly, only qualified education and medical expense paid directly to the school/hospital can "bypass" the gift definition in the US.
In Japan, we don't have to directly pay the institutions, but can explain to tax authorities that certain things were for living expense and thus are not gifts, so the transfer in 2014 would not be regarded as gifts at all.
Basically, the money I received won't be classified as gifts in my home country. Would I still need to submit Form 3520 since the IRC classifies it as a gift? Also, would the IRS send this information back to the Tax authority in Japan? It's not a problem either way but they can be quite a pain.. (like an audit here, maybe).