I'd like to know if income received here in the USA from a rental property overseas is taxable and should be reported to the IRS. Thank you.

Yes, if you are a resident alien/resident/US citizen, you are required to report your worldwide income on your tax return. If you pay taxes on that income, you may be able to take a credit or deduction for those taxes (form 1116).
If you are a non-resident alien. You are only required to report on US source income

Yes, if you are a U.S. citizen or resident, you must do Schedule E (Form 1040) to report your rental income.

Note that, in most cases, a rental activity generally produces a LOSS on your return, which means it is to your ADVANTAGE to report the rental activity.

I agree. But in this case the rental property is generating a positive cash flow- lots of it. The return from this property are wired to bank accounts here in the USA. Are the recipients of this money responsible for reporting this extra income to the IRS and should they pay taxes on it ?

Moonlite - your question was already answered by Mukata. The answer is yes if the person receiving the funds is a US citizen or resident. Is there some further clarification you're looking for?