Looking for a Form 709 Templates? Download it for free!

no estate tax return is required to be filed,

reasonable cause. Those filing late (after

Alaska, Arizona, California

the due date for the 2000 Form 709

the due date, including extensions) should

(counties of Alpine, Amador,

Butte, Calaveras, Colusa,

(without extensions) is April 16, 2001. For

attach an explanation to the return to

Contra Costa, Del Norte, El

more details, see Regulations section

show reasonable cause.

Dorado, Glenn, Humboldt,

25.6075-1.

A valuation understatement occurs

Lake, Lassen, Marin,

Mendocino, Modoc, Napa,

when the reported value of property

Extension of Time To File

Nevada, Placer, Plumas,

Ogden, UT

entered on Form 709 is 50% or less of the

Sacramento, San Joaquin,

84201

There are two methods of extending the

actual value of the property.

Shasta, Sierra, Siskiyou,

time to file the gift tax return. Neither

Solano, Sonoma, Sutter,

Tehama, Trinity, Yolo, and

method extends the time to pay the gift

Joint Tenancy

Yuba), Colorado, Idaho,

or GST taxes. If you want an extension

Montana, Nebraska, Nevada,

If you buy property with your own funds

of time to pay the gift or GST taxes, you

North Dakota, Oregon, South

and the title to such property is held by

Dakota, Utah, Washington,

must request that separately. (See

Wyoming

yourself and the donee as joint tenants

Regulations section 25.6161-1.)

with right of survivorship and if either you

By letter. You can request an extension

Fresno, CA

or the donee may give up those rights by

California (all other counties)

93888

of time to file your gift tax return by writing

severing your interest, you have made a

to the service center for your area. You

Kansas City, MO

gift to the donee in the amount of half the

must explain the reasons for the delay.

Illinois

64999

value of the property.

You MUST use a letter to request an

Memphis, TN

If you create a joint bank account for

extension of time to file your gift tax return

Alabama, Tennessee

37501

yourself and the donee (or a similar kind

unless you are also requesting an

Philadelphia, PA

of ownership by which you can get back

extension to file your income tax return.

Virginia

19255

the entire fund without the donee's

By extending the time to file your

consent), you have made a gift to the

American Samoa, Guam, the

income tax return. Any extension of

Virgin Islands, Puerto Rico,

Philadelphia, PA

donee when the donee draws on the

time granted for filing your calendar year

a foreign country, or have an

19255

account for his or her own benefit. The

Federal income tax return will also extend

APO or FPO address

amount of the gift is the amount that the

the time to file any gift tax return. Income

donee took out without any obligation to

tax extensions are made by using Form

Adequate Disclosure

repay you. If you buy a U.S. savings bond

4868, 2688, or 2350, which have

registered as payable to yourself or the

checkboxes for Form 709. See Form 4868

To begin the running of the statute of

donee, there is a gift to the donee when

to get an automatic 4–month extension

limitations regarding a gift, the gift must

he or she cashes the bond without any

by phone using a credit card to pay part

be adequately disclosed on Form 709 (or

obligation to account to you.

or all of the Federal income tax (but not

an attached statement) filed for the year

gift or GST taxes) you expect to owe for

of the gift.

Transfer of Certain Life

2000. You may only use one of these

In general, a gift will be considered

Estates

forms to extend the time for filing your gift

adequately disclosed if the return or

tax return if you are also requesting an

statement provides the following:

If you received a qualifying terminable

extension of time to file your income tax

A description of the transferred property

interest (see page 9) from your spouse for

return.

and any consideration received by the

which a marital deduction was elected on

donor,

your spouse's estate or gift tax return, you

Where To File

The identity of, and relationship

will be subject to the gift (and GST, if

between, the donor and each donee,

applicable) tax if you dispose of all or part

File Form 709 at the applicable IRS

of your life income interest (by gift, sale,

address listed below.

If the property is transferred in trust, the

or otherwise).

trust's EIN and a brief description of the

Use the following

terms of the trust (or a copy of the trust

The entire value of the property

If you are located in

Internal Revenue

instrument in lieu of the description), and

involved less (a) the amount you received

Service Center address

on the disposition and (b) the amount (if

Either a qualified appraisal or a detailed

any) of the life income interest you

description of the method used to

retained after the transfer will be treated

New York (New York City

determine the fair market value of the gift.

as a taxable gift. That portion of the

and counties of Nassau,

Holtsville, NY

See Regulations section

Rockland, Suffolk, and

00501

property's value that is attributable to the

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

Westchester)

remainder interest is a gift of a future

including what constitutes a qualified

interest for which no annual exclusion is

New York (all other

appraisal, the information required if no

counties), Connecticut,

allowed. To the extent you made a gift of

Andover, MA

appraisal is provided, and the information

Maine, Massachusetts, New

05501

the life income interest, you may claim an

Hampshire, Rhode Island,

required for transfers under sections 2701

annual exclusion, treating the person to

Vermont

and 2702.

whom you transferred the interest as the

Atlanta, GA

donee for purposes of computing the

Penalties

Florida, Georgia

39901

annual exclusion.

Arkansas, Delaware, District

The law provides for penalties for both

of Columbia, Hawaii, Indiana,

late filing of returns and late payment of

Iowa, Kentucky, Louisiana,

Specific Instructions

tax unless you have reasonable cause.

Maryland, Michigan,

Minnesota, Mississippi,

Cincinnati, OH

There are also penalties for valuation

Missouri, New Jersey, North

45999

understatements that cause an

Carolina, Ohio,

Part I—General Information

underpayment of the tax, willful failure to

Pennsylvania, South

Carolina, Texas, West

file a return on time, and willful attempt to

Split Gifts—Gifts by Husband or

Virginia, Wisconsin

evade or defeat payment of tax.

Wife to Third Parties

Kansas, New Mexico,

Austin, TX

The late filing penalty will not be

Oklahoma

73301

imposed if the taxpayer can show that the

A married couple may not file a joint gift

failure to file a timely return is due to

tax return.

Page 4

Instructions For Form 709 - United States Gift (And Generation-Skipping Transfer) Tax Return - 2000 Page 4

Related Articles

Related forms

Related Categories