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Section 2701 Elections

Form 709 may be subject to the GST tax

method extends the time to pay the gift or

at a later date. This is true even if the

GST taxes. If you want an extension of

The special valuation rules of section 2701

transfer is less than the $14,000 annual

time to pay the gift or GST taxes, you must

contain three elections that you must

exclusion. In this instance, you may want

request that separately. See Regulations

make with Form 709.

to apply a GST exemption amount to the

section 25.6161-1.

1. A transferor may elect to treat a

transfer on this return or on a Notice of

By extending the time to file your in-

qualified payment right he or she holds

Allocation. For more information, see

come tax return. Any extension of time

(and all other rights of the same class) as

Schedule D, Part 2—GST Exemption

granted for filing your calendar year 2017

other than a qualified payment right.

Reconciliation and Schedule A, Part

federal income tax return also will

3—Indirect Skips.

2. A person may elect to treat a

automatically extend the time to file your

distribution right held by that person in a

2017 federal gift tax return. Income tax

Transfers Subject to an Estate

controlled entity as a qualified payment

extensions are made by using Form 4868,

right.

Tax Inclusion Period (ETIP)

Application for Automatic Extension of

3. An interest holder may elect to treat

Time To File U.S. Individual Income Tax

Certain transfers that are direct skips

as a taxable event the payment of a

Return, or Form 2350, Application for

receive special treatment. If the

qualified payment that occurs more than 4

Extension of Time To File U.S. Income

transferred property would have been

years after its due date.

Tax Return. You may only use these forms

includible in the donor's estate if the donor

to extend the time for filing your gift tax

had died immediately after the transfer (for

The elections described in (1) and (2)

return if you also are requesting an

a reason other than the donor having died

must be made on the Form 709 that is filed

extension of time to file your income tax

within 3 years of making the gift), the

by the transferor to report the transfer that

return.

direct skip will be treated as having been

is being valued under section 2701. The

made at the end of the ETIP rather than at

elections are made by attaching a

By filing Form 8892. If you do not

the time of the actual transfer.

statement to Form 709. For information on

request an extension for your income tax

what must be in the statement and for

return, use Form 8892, Application for

For example, if A transferred her house

definitions and other details on the

Automatic Extension of Time To File Form

to her granddaughter, B, but retained the

elections, see section 2701 and

709 and/or Payment of Gift/

right to live in the house until her death (a

Regulations section 25.2701-2(c).

Generation-Skipping Transfer Tax, to

retained life estate), the value of the house

request an automatic 6-month extension

would be includible in A's estate if she

The election described in (3) may be

of time to file your federal gift tax return. In

died while still holding the life estate. In

made by attaching a statement to the

addition to containing an extension

this case, the transfer to B is a completed

Form 709 filed by the recipient of the

request, Form 8892 also serves as a

gift (it is a transfer of a future interest) and

qualified payment for the year the

payment voucher (Form 8892-V) for a

must be reported on Part 1 of Schedule A.

payment is received. If the election is

balance due on federal gift taxes for which

The GST portion of the transfer would not

made on a timely filed return, the taxable

you are extending the time to file. For

be reported until A died or otherwise gave

event is deemed to occur on the date the

more information, see Form 8892.

up her life estate in the house.

qualified payment is received. If it is made

Private Delivery Services

on a late filed return, the taxable event is

Report the gift portion of such a

deemed to occur on the first day of the

transfer on Schedule A, Part 1, at the time

Filers can use certain private delivery

month immediately preceding the month in

of the actual transfer. Report the GST

services (PDS) designated by the IRS to

which the return is filed. For information on

portion on Schedule A, Part 2, but only at

meet the “timely mailing as timely filing”

what must be in the statement and for

the close of the ETIP. Use Form 709 only

rule for tax returns. Go to

IRS.gov/PDS

for

definitions and other details on this

to report those transfers where the ETIP

the current list of designated services.

election, see section 2701 and

closed due to something other than the

Regulations section 25.2701-4(d).

The private delivery service can tell you

donor's death. (If the ETIP closed as the

how to get written proof of the mailing

result of the donor's death, report the

All of the elections may be revoked, but

date.

transfer on Form 706, United States

only with the consent of the IRS.

Estate (and Generation-Skipping Transfer)

For the IRS mailing address to use if

When To File

Tax Return.)

you're using PDS, go to

IRS.gov/

PDSstreetAddresses.

Form 709 is an annual return.

If you are filing this Form 709 solely to

report the GST portion of transfers subject

Private delivery services can't

Generally, you must file Form 709 no

to an ETIP, complete the form as you

deliver items to P.O. boxes. You

earlier than January 1, but not later than

normally would with the following

must use the U.S. Postal Service

April 15, of the year after the gift was

CAUTION

exceptions.

to mail any item to an IRS P.O. box

made. However, in instances when April

address.

1. Write “ETIP” at the top of page 1.

15 falls on a Saturday, Sunday, or legal

holiday, Form 709 will be due on the next

2. Complete only lines 1 through 6, 8,

business day. See section 7503.

Where To File

and 9 of Part 1—General Information.

If the donor died during 2017, the

3. Complete Schedule A, Part 2, as

File Form 709 at the following address.

explained in the instructions for that

executor must file the donor's 2017 Form

schedule.

709 not later than the earlier of:

Department of the Treasury

The due date (with extensions) for filing

Internal Revenue Service Center

4. Complete Schedule D. Complete

the donor's estate tax return; or

Cincinnati, OH 45999

column B of Schedule D, Part 1, as

April 17, 2018, or the extended due

explained in the instructions for that

date granted for filing the donor's gift tax

If submitting Form 709 by private

schedule.

return.

delivery service (discussed earlier), mail

5. Complete only lines 10 and 11 of

to:

Extension of Time To File

Schedule A, Part 4.

6. Complete Part 2—Tax

There are two methods of extending the

Computation.

time to file the gift tax return. Neither

-4-

Instructions For Form 709 - United States Gift (And Generation-Skipping Transfer) Tax Return - 2017 Page 4

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