Have a Tax Question? Ask a Tax Expert
The US does not tax inheritances. The estate may be subject to tax in Germany, but that would be taken care of over there by the estate. You may have to report this on Form 3520 if the distribution was from a foreign trust or considered a gift and over $100K. Please let me know if this came from a trust and the amount of the monies received. Otherwise, you would not need to report this inheritance. Please let me know if you have further questions.
The bank may have indeed reported the transaction, but even if the IRS inquires about it, you have a valid explanation. You also have no reporting requirement. BotXXXXX XXXXXne, the IRS will most likely not come knocking, but if they do, you still have nothing to worry about. Please let me know if you have further questions.