01/04/2012

Gift Tax Returns

The IRS has announced that it will obtain the names of individuals who transferred realty for little or no consideration to family members and check if gift tax returns were filed.  The IRS estimates that between 50% and 90% of these donors did not file a Form 709 to report these gifts.  (in the Matter of the Tax Liabilities of John Does, D.C., Calif.).  If the gift is over $13,000, the form must be filed to report it, even if no tax is due.