Legal Question in Tax Law in Illinois

Your question is raises a question: are your parents residents of the U.S., or do they reside in the foreign country? The answer may be different.

The general rule of thumb is that gifts are not taxable to the recipient (the "donee"), thus we would expect if the transfer of value is truly a gift there would be no income tax and no gift tax to the recipient. If the property being gifted can be considered U.S. property, or if the donors have certain financial connections or personal affilitations to the U.S., there may be an obligation for gift tax. If there is a gift tax to be paid (after any applicable exclusions have been taken into account) and the donor doesn't pay it, the recipient may be liable. This is certainly an instance where you want to review your specific facts and circumstances with a qualified professional to obtain an opinion you can reasonably rely upon (an internet Q & A is not a legal opinion, and not a basis for avoiding penalties if you make the wrong call).