Be Sure to File Your Gift Tax Return…the IRS is Watching

If you give anyone more than $13,000 during the year, then you are required to file a gift tax return with your income tax return. Unfortunately, many do not know about this requirement, choose to ignore it, or do not realize that they have made a gift. Whenever you give someone something that they did not pay for, that is a gift.

Currently, the IRS is actively looking through registered deeds in various states to find deeds where parents have added children to their homes but have not filed a gift tax return. If you are caught, the consequences can be severe, and it will be too late to “fix it”.

If you have made gifts, but not filed gift tax returns, talk to your tax adviser to see what you need to do before the IRS comes calling.