Is dealing with the IRS a hassle when transferring large amounts?

If you follow the law and submit your legal documentation timely and accurately, you shouldn't experience hassles with the IRS. If you choose not to follow the law, you may be on the hook for stiff penalties, including jail time.

Can I avoid IRS penalties if I fail to file?

Penalties can be avoided if you can show the IRS reasonable cause for a failure to file. However, the US does not consider reasonable cause to include information that might be a crime in another country.

If I am inheriting money from outside of the country, do I have to pay taxes on it in the US?

If you receive an inheritance or gifts from someone outside of the US exceeding $100,000, then you must report this to the IRS. You can do this by filling out a Form 3520. As for taxes, the IRS doesn’t impose them on foreign inheritance or gifts if the recipient is a US citizen or resident alien. But just keep in mind whether you still need to pay taxes on your inheritance will depend on your state’s tax laws.