If you fail to file the gift tax return, you’ll be assessed a gift tax penalty of 5 percent per month of the tax due, up to a limit of 25 percent. If your filing is more than 60 days late (including an extension), you’ll face a minimum additional tax of at least $205 or 100 percent of the tax due, whichever is less.

Can you file Form 709 late?

Section 6651 imposes penalties for both late filing and late payment, unless there is reasonable cause for the delay. Reasonable cause determinations. If you receive a notice about penalties after you file Form 709, send an explanation and we will determine if you meet reasonable-cause criteria.

When is the deadline to file Form 709?

Form 709 Deadlines. The filing deadline for IRS Form 709 is the tax filing deadline of the year after the gift is completed. This is typically April 15 or the next business day if the tax deadline falls on a weekend or holiday.

What do you need to know about IRS Form 709?

What Is IRS Form 709? IRS Form 709 is used to report taxable gifts made during a taxpayer’s lifetime, and it also allocates the lifetime use of a taxpayer’s generation-skipping transfer tax exemption. You might have to file IRS Form 709 and pay gift tax if you make one or more transfers of cash or property, but there are several exceptions.

Where do I find the unified credit on Form 709?

It is located on the first page of Form 709. Refer to the “Table for Computing Gift Tax” under instructions to calculate the tax on the amount of reported gift or gifts. You may apply your lifetime gift and estate tax exemption, also known as the unified credit. So you don’t have to pay an out-of-pocket tax if you use this exemption.

Do you have to file a 709 gift tax return?

Officially, it’s called the United States Gift (and Generation-Skipping Transfer) Tax Return. If you make a joint gift with your spouse, each individual must fill out a Form 709. There is no joint Form 709. However, you won’t need to pay an actual tax unless you go beyond your lifetime gift and estate tax exemption.