BulldogTom Posted April 14, 2011 Report Share Posted April 14, 2011 I have an elderly client who is giving his property and cash to his daughters. I told him he has to file a gift tax return. There will be no tax as his exemption credit will not be used up, and what he is giving them is the bulk of any estate that would be left if he were to pass away. But he doesn't want to file the return. What are the consequences of not filing a gift tax return? Tom Lodi, CA Quote Link to comment Share on other sites More sharing options...
TAXBILLY Posted April 14, 2011 Report Share Posted April 14, 2011 Possible legal headaches and expenses later. A lot cheaper to file 709 and pay no tax and be covered. taxbilly Quote Link to comment Share on other sites More sharing options...
KEYWEST_RICKS Posted April 14, 2011 Report Share Posted April 14, 2011 i believe that the big advantage to filing is to start the stat of limit rolling.... if no gift tax return ever filed then the valuation can be challenged later at time estate. file the gift tax return now and three years to audit the numbers. jeff Quote Link to comment Share on other sites More sharing options...
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