IRS Estate & Gift Tax Program Working WIth States on Real Estate Transfers

According to the IRS, the IRS Estate and Gift Tax Program recently started working with state and county authorities in several states to determine if real estate transfers reported to them are unreported gifts. Although a tax may not be due, a gift tax return may be required for real estate transfers above the annual exclusion amount.  Penalties will be considered on all delinquent taxable gift returns filed.  See IRS ENews for Tax Professionals, Issue No. 2009-31.

Posted by Lewis J. Saret, General Editor, Wealth Strategies Journal.