Q.899 Transferring inherited

money from India to USA . . .

I have a NRO account in India. The money in the account was inherited from my parents over a period of time. Taxes have been paid in India and the US on the original inheritance and all subsequently generated income I have the 15 CA/CB forms filled out in India and am getting ready to submit them; so that I can transfer the money to my US Bank. Are there any papers to be filed in the US before I can transfer the money. Since I have already paid taxes, are there any more US tax implications Thanks for your help Shekar Ramanathan Answer: The United States does not impose taxes on inheritances unless a US citizen or resident alien receives a gift or inheritance from another US citizen or resident alien and then the US inheritance laws apply. Kindly be aware that although in some cases there may be no US taxes involved, there may be IRS reporting requirements. So even if a gift or inheritance from a non-resident may be tax free in the United States, in case the inheritance or gifted amount exceeds US$100,000 in a calendar year, then this should be reported to the IRS by filling Form 3520. Depending on the amount of money inherited and being transferred, check the IRS website for Form 3520 filling requirements and procedure. Reporting is generally done after the money is transferred. An accountant in the United States or your tax advisor would be able to handle this easily for you and keep you in compliance of IRS laws. Kindly keep in mind that if money was placed in your NRO account, then the interest income may be taxable in the United States.