IRS Form 709 United States Gift (And Generation-Skipping Transfer) Tax Return

IRS Form 709 Instructions

The IRS Form 709 instructions are as follows:

1. Identify the donor - indicate their full name, social security number, address, and citizenship. In case the donor passed away during the tax year covered by the document, you have to state their date of death . Check the box to confirm you needed extra time to prepare the form and enter the number of gift recipients you have identified on Form 1040 Schedule A, Itemized Deductions, that you are attaching to IRS Form 1040, U.S. Individual Income Tax Return. Inform the IRS about a possible address change and previous filing if necessary.

2. Obtain the consent of the spouse to approve the gift and the subsequent payment of tax . The form has to contain the name of the spouse and their social security number - make sure this person signs and dates the document being fully aware of the gift.

3. Compute the tax using the formulas listed in the form - you will have to write down the total amount of taxable gifts and the credits that apply in your case . Certify the instrument by adding your signature and actual date of signing. If the paperwork was filled out by a preparer you hired for assistance, they must sign the tax return as well.

4. Complete schedules on pages 2-5 of the form to share more specifics about the gifts subject to taxation, describe the gifts from previous calendar years you still have to report, elaborate on the deceased spousal unused exemption amount if applicable, and calculate the tax you need to pay if the recipient of the gift is more than one generation younger than the donor.

Where to File Form 709?

Unlike many other tax instruments, IRS Form 709 cannot be prepared and submitted online. Its mailing address depends on the circumstances of filing:

1. If you prefer to send the paperwork via traditional mail, submit the form to the Department of the Treasury, Internal Revenue Service Center, Kansas City MO 64999 .

2. File the tax return with the Internal Revenue Service, 333 W. Pershing Road, Kansas City, MO 64108 in case it is more convenient for you to use a private delivery service.

3. Send the form to the Internal Revenue Service Center, Attn: E&G, Stop 824G, 7940 Kentucky Drive, Florence, KY 41042-2915 if you are filing an amended statement whether you are filing by mail or private delivery service.

Note that if tax authorities inform you that your documentation is already under examination, you need to reach out directly to the IRS office to make last-minute modifications to the form.

Who Must File Form 709?

You are obliged to submit a Gift Tax Form to the fiscal organs if you need to pay gift taxes. Taxable gifts that cost more than $17,000 must be properly documented and reported to the IRS. The amount is doubled when you are married filing jointly. There are certain exceptions to the general rule - you are not required to inform the authorities about the gifts you made to your spouse, present interest gifts, gifts to organizations that are engaged in politics, medical payments you made for another person, and any gifts below the threshold prescribed for the tax year.

The nature of the taxable gift may vary - you will be responsible for paying the tax in question if you are funding someone's purchase of a residence, forgiving a loan, or gifting someone cash or real property. In all instances, the duty to file a Taxable Gift Form lies with the person that chose to make the gift, not with the recipient.

When Is Form 709 Due?

There is no universal Form 709 due date all taxpayers are expected to comply with - there is, however, a time period between January 1 and April 15 of the year that follows the year the gift was formally made when you can file the tax return. The deadline is different for taxpayers that made arrangements for the Form 709 extension.

If you do need extra time to prepare the paperwork, there are two ways to do so - you may either apply for an extension for the main income statement or submit IRS Form 8892, Application for Automatic Extension of Time To File Form 709 and/or Payment of Gift/Generation-Skipping Transfer Tax, so that you get six more months to complete the documentation.