If you made any gifts in excess of $13,000 (that number is $14,000 for 2013) to anyone in 2012, then you must file a Form 709 Gift Tax Return. Period. In fact, a recent article in Forbes titled “Don't Gamble With Gift Tax Returns” considered this matter in detail.
The humble gift tax return is among the easiest tax document to forget, but it’s also one of the most important to get right. After all, the return is what the IRS uses to assess any possible gift tax. Even if you don’t actually “owe” any gift tax, you still must file the return.
Gift tax returns that raise red flags or don’t get filed in the first place can be audited just like any tax return. No audit is a good audit.
So, if this is new information to you and you are not ready to file your Form 709, then you can get an extension by filing a Form 8892. Perhaps you need more time to get everything properly documented.
The original Forbes article also has some pointers when it comes to extensions. However, any gift tax must be paid by April 15, if any is owed. Otherwise, you will be hit with interest and potential penalties.This is a hot topic this year, since 2012 was such a big year for gifting. Understanding the complexities of Gifting is just a part of successful estate planning. To ensure a successful plan, we at Idaho Estate Planning will: 1) educate you and your helpers; 2) take the time to get to know you, your family, your desires, your concerns, your goals, and your potential problems; 3) gladly and patiently answer questions until you understand the concept or issue; and, 4) based on experience with the problems and results caused by poor planning, help you design and implement the plan that fits your concerns and goals. Remember, good planning is no accident.