Am dual citizen French-US living in US since 1961, now retired, with a small savings in Paris credit union. Savings is from French parents’ inheritance, not from earned income. Paris Credit Union is requesting filled US W-9 form to give me my balance amount. Will the IRS tax me on the yearly income or the whole balance? Since husband has Alzheimer am not planning many trips to Paris – should I close Paris account and wire it back to US? Will I be taxed on whole account, or should I just leave it there and use it on trips to Paris?
You shouldn't have to pay taxes on it, as inheritance and gifts are generally exempt, but you do have to report it. According to the IRS:
If you are a U.S. person who received foreign gifts of money or other property, you may need to report these gifts on Form 3520, Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts. Form 3520 is an information return, not a tax return, because foreign gifts are not subject to income tax.
You may want to consult with a tax professional as you decide what works best for you, and before you file next year's tax returns.