Here is the good news first: if your parents overseas send you money, or a relative abroad leaves you an inheritance, you generally do not owe U.S. income tax on it. A gift is a gift.

Opening an IRS notice and seeing a penalty tacked onto your balance is stressful, whether it’s on your personal return or your company’s. The good news: many penalties aren’t final. The IRS has formal relief programs that can remove late-filing, late-payment, and late-deposit penalties, sometimes with a single phone call. This process is called penalty abatement, and knowing the basics can save you hundreds or even thousands of dollars. What Is Penalty Abatement? Penalty abat

Did You Receive a Foreign Inheritance or Gift? Here's What You Need to Know