Instructions For Form Ct-709 - Connecticut Estate And Gift Tax Return

Failure to File

clear and complete explanation. Be sure to include your

name, Social Security Number, name of original form filed

If the donor fails to file a return and the Commissioner of

or billing notice received, and taxable filing period on all

Revenue Services files a return for the donor, the penalty

correspondence. Attach your penalty waiver request to

for failure to file is 10% (.10) of the balance due or $50,

the front of your tax return or mail separately to:

whichever is greater.

Department of Revenue Services

Failure to Report Federal Changes

Penalty Review Committee

PO Box 5089

If the amount of your taxable gifts is changed or corrected

Hartford CT 06102-5089

by the Internal Revenue Service or other competent

Interest cannot be waived. Before a penalty waiver can

authority for any taxable year and if the federal change

be granted, the taxpayer must pay all tax and interest due.

or correction affects your Connecticut gift tax liability,

then you are required to report such change or correction

no later than 90 days after the final determination of your

Record Retention

federal gift tax liability. The change or correction should

Keep a copy of your tax return, worksheets you used,

be reported on Form CT-709.

and records of all items appearing on the return until the

If you file an amended federal gift tax return for any

statute of limitations runs out for that return. Usually, this

taxable year and if the amendment affects your

is three years from the date the return was due or filed.

Connecticut gift tax liability, then you are required to file

You may need this information to prepare future returns

an amended Form CT-709 no later than 90 days after

or to amend filed returns.

the date of filing your amended federal gift tax return.

In either case, the penalty for failure to file an amended

Form CT-709 within such time is $50.

Copies of Returns

You may request a copy of a previously filed Connecticut

Waiver of Penalty

gift tax return from the Department by completing

LGL-002, Request for Disclosure of Tax Return or

The donor may be entitled to a waiver of penalty if the

Tax Return Information. It generally takes three weeks

failure to pay tax was due to reasonable cause. Request

to fill such requests.

for a penalty waiver must be in writing and contain a

TRANSFERS SUBJECT TO GIFT TAX

Annual Exclusion

Transfers (in trust or otherwise) of real, personal, tangible

or intangible property by gift (direct or indirect) by resident

Certain transfers are wholly or partially excluded from

or nonresident individuals during 1999 are subject to the

the total amount of gifts. The first $10,000 ($20,000 gift

gift tax.

split) of any gifts to any donee during the calendar year

of a present (not future) interest in property is excluded

from the total amount of gifts. (The annual exclusion

Taxable Gifts

amount will be indexed for inflation after 1998 for federal

and Connecticut gift tax purposes. However, there is no

Taxable gifts, for Connecticut gift tax purposes, has the

adjustment to the annual exclusion amount for 1999.) A

same definition as for federal gift tax purposes. It means

present interest in property is an unrestricted right to

the total amount of gifts made during the calendar year,

the immediate use, possession or enjoyment of property

less certain deductions.

or the income from the property. The first $10,000

The total amount of gifts for Connecticut gift tax

($20,000) of any gifts to any donee during the calendar

purposes is the sum of the value, on the date of the gift,

year will be the same for federal and Connecticut gift

of each gift made by the donor to a donee during the

tax purposes. Gifts to any donee which include tangible

calendar year. This amount may be less than the total

personal property or real property located outside

amount of gifts for federal gift tax purposes, to the extent

Connecticut are not subject to the Connecticut gift tax.

that any gifts made by the donor are not subject to

Therefore, if all or a portion of the first $10,000 ($20,000)

Connecticut gift tax (such as a gift of real property located

of gifts to any donee during the calendar year is a gift or

in another state).

Page 7

Instructions For Form Ct-709 - Connecticut Estate And Gift Tax Return - 1999 Page 7

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