IRS Scrutinizes Gifts of Real Estate

A court document with the IRS filing described efforts by Josephine Bonaffini, the coordinator of an IRS state and federal gift-and-estate tax program, to find people who haven’t filed Form 709 to report U.S. gift and generation-skipping transfer taxes to the IRS.

The document, dated Dec. 21, said 323 taxpayers in the previous two years had been examined for failing to report possible gifts. Another 217 were being examined and 250 more were being considered for review. So far, Ms. Bonaffini said in the document, 97 had failed to report gifts on Form 709. Twelve cases resulted in taxes or penalties because a gift put the donor over the $1 million lifetime gift credit that applied at the time.

States that have handed over information on gift-like transactions are Connecticut, Florida, Hawaii, Nebraska, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia, Washington and Wisconsin, according to the document. Ms. Bonaffini examined a sampling of data from these states and it showed “an extremely high failure-to-report rate,” the document said.

Click HERE For More Information | Wall Street Journal

 

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