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All of the elections may be revoked

Where To File

only with the consent of the IRS.

File Form 709 at the Internal Revenue Service Center listed below.

When To File

If you are located in:

Then the address is:

Form 709 is an annual return.

Internal Revenue Service Center

Generally, you must file the 2005 Form

709 no earlier than January 1, 2006, but

The 50 states or the District of Columbia

Cincinnati, OH 45999

not later than April 17, 2006.

A foreign country, American Samoa, Guam,

If the donor died during 2005, the

the Virgin Islands, Puerto Rico, or have an

Philadelphia, PA 19255

executor must file the donor’s 2005 Form

APO or FPO address

709 not later than the earlier of:

•

The due date (with extensions) for filing

the donor’s estate tax return, or

or the donee may give up those rights by

Adequate Disclosure

•

severing your interest, you have made a

April 17, 2006 or the extended due date

granted for filing the donor’s gift tax

gift to the donee in the amount of half the

To begin the running of the statute

return.

value of the property.

of limitations regarding a gift, the

gift must be adequately disclosed

CAUTION

Under this rule, the 2005 Form 709 may

If you create a joint bank account for

on Form 709 (or an attached statement)

be due before April 17, 2006, if the donor

filed for the year of the gift.

yourself and the donee (or a similar kind

died before July 15, 2005. If the donor

of ownership by which you can get back

In general, a gift will be considered

died after July 14, 2005, the due date

the entire fund without the donee’s

adequately disclosed if the return or

(without extensions) is April 17, 2006. If

consent), you have made a gift to the

statement provides the following:

•

no estate tax return is required to be filed,

A description of the transferred

donee when the donee draws on the

the due date for the 2005 Form 709

property and any consideration received

account for his or her own benefit. The

(without extensions) is April 17, 2006. For

by the donor;

amount of the gift is the amount that the

•

more details, see Regulations section

The identity of, and relationship

donee took out without any obligation to

25.6075-1.

between, the donor and each donee;

repay you.

•

If the property is transferred in trust, the

Extension of Time To File

trust’s EIN and a brief description of the

If you buy a U.S. savings bond

terms of the trust (or a copy of the trust

There are two methods of extending the

registered as payable to yourself or the

instrument in lieu of the description); and

time to file the gift tax return. Neither

•

donee, there is a gift to the donee when

Either a qualified appraisal or a detailed

method extends the time to pay the gift or

he or she cashes the bond without any

description of the method used to

GST taxes. If you want an extension of

obligation to account to you.

determine the fair market value of the gift.

time to pay the gift or GST taxes, you

must request that separately. (See

See Regulations section

Regulations section 25.6161-1.)

301.6501(c)-1(e) and (f) for details,

Transfer of Certain Life

including what constitutes a qualified

By extending the time to file your

appraisal, the information required if no

Estates Received From

income tax return. Any extension of

appraisal is provided, and the information

time granted for filing your calendar year

required for transfers under sections 2701

Spouse

2005 federal income tax return will also

and 2702.

If you received a qualified terminable

automatically extend the time to file your

interest (see Line 13 — QTIP election for

Penalties

2005 gift tax return. Income tax

annuities on page 10) from your spouse

extensions are made by using Form 4868

The law provides for penalties for both

for which a marital deduction was elected

or 2350. You may only use these forms to

late filing of returns and late payment of

on your spouse’s estate or gift tax return,

extend the time for filing your gift tax

tax unless you have reasonable cause.

you will be subject to the gift tax (and

return if you are also requesting an

There are also penalties for valuation

GST tax, if applicable) if you dispose of all

extension of time to file your income tax

understatements that cause an

return.

or part of your life income interest (by gift,

underpayment of the tax, willful failure to

sale, or otherwise).

file a return on time, and willful attempt to

By filing Form 8892. If you do not

evade or defeat payment of tax.

request an extension for your income tax

The entire value of the property

The late filing penalty will not be

return, use Form 8892, Application for

involved less:

imposed if the taxpayer can show that the

Automatic Extension of Time To File

failure to file a timely return is due to

1. The amount you received on the

Form 709 and/or Payment of Gift/

reasonable cause. Those filing late (after

disposition, and

Generation-Skipping Transfer Tax (Rev.

the due date, including extensions)

January 2006), to request an automatic

2. The amount (if any) of the life

should attach an explanation to the return

6-month extension of time to file your

income interest you retained after the

to show reasonable cause.

federal gift tax return. This form must be

transfer will be treated as a taxable gift.

A valuation understatement occurs

used instead of writing a letter to the

That portion of the property’s value that is

when the reported value of property

Cincinnati Service Center to request an

attributable to the remainder interest is a

entered on Form 709 is 50% or less of the

extension of time to file Form 709. In

gift of a future interest for which no annual

actual value of the property.

addition to containing an extension

exclusion is allowed. To the extent you

request, Form 8892 also serves as a

Joint Tenancy

made a gift of the life income interest, you

payment voucher for a balance due on

may claim an annual exclusion, treating

federal gift taxes for which you are

If you buy property with your own funds

the person to whom you transferred the

extending the time to file. For more

and the title to such property is held by

information, see Form 8892 and its

interest as the donee for purposes of

yourself and the donee as joint tenants

instructions.

with right of survivorship and if either you

computing the annual exclusion.

-4-

Instructions For Form 709 - United States Gift (And Generation-Skipping Transfer) Tax Return - 2005 Page 4

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