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Line 7

zero for the property transferred. You may

The authorization will automatically

elect out of this automatic allocation as

end no later than the due date (without

If you are a citizen or resident of the

explained in the instructions for Part 3.

regard to extensions) for filing your 2011

United States, you must take any

Form 709. This is April 16, 2012, for most

Line 6

available unified credit against gift tax.

filers. If you wish to revoke the

Nonresident aliens may not claim the

Notice of allocation. You may wish to

authorization before it ends, see Pub.

unified credit. If you are a nonresident

allocate GST exemption to transfers not

947.

alien, delete the $330,800 entry, skip line

reported on this return, such as a late

8, and write in zero on line 11.

Disclosure, Privacy Act, and

allocation.

Paperwork Reduction Act Notice. We

Line 10

To allocate your exemption to such

ask for the information on this form to

transfers, attach a statement to this Form

Enter 20% of the amount allowed as a

carry out the Internal Revenue laws of the

709 and entitle it “Notice of Allocation.”

specific exemption for gifts made after

United States. We need the information to

The notice must contain the following for

September 8, 1976, and before January

figure and collect the right amount of tax.

each trust (or other transfer):

1, 1977. (These amounts will be among

Form 709 is used to report (1) transfers

•

Clearly identify the trust, including the

those listed in Schedule B, column D, for

subject to the federal gift and certain GST

trust’s EIN, if known;

gifts made in the third and fourth quarters

taxes and to figure the tax, if any, due on

•

of 1976.)

If this is a late allocation, the year the

those transfers, and (2) allocations of the

transfer was reported on Form 709;

Line 13

lifetime GST exemption to property

•

The value of the trust assets at the

transferred during the transferor’s lifetime.

Gift tax conventions are in effect with

effective date of the allocation;

•

Our legal right to ask for the

Australia, Austria, Denmark, France,

The amount of your GST exemption

information requested on this form is

Germany, Japan, and the United

allocated to each gift (or a statement that

found in sections 6001, 6011, 6019, and

Kingdom. If you are claiming a credit for

you are allocating exemption by means of

6061, and their regulations. You are

payment of foreign gift tax, figure the

a formula such as “an amount necessary

required to provide the information

credit on an attached sheet and attach

to produce an inclusion ratio of zero”);

requested on this form. Section 6109

evidence that the foreign taxes were paid.

and

•

requires that you provide your identifying

See the applicable convention for details

The inclusion ratio of the trust after the

number.

of computing the credit.

allocation.

Generally, tax returns and return

Line 19

Total the exemption allocations and

information are confidential, as stated in

enter this total on line 6.

Make your check or money order payable

section 6103. However, section 6103

Note. Where the property involved in

to “United States Treasury” and write the

allows or requires the Internal Revenue

such a transfer is subject to an ETIP

donor’s social security number on it. You

Service to disclose or give such

because it would be includible in the

may not use an overpayment on Form

information shown on your Form 709 to

donor’s estate if the donor died

1040 to offset the gift and GST taxes

the Department of Justice to enforce the

immediately after the transfer (other than

owed on Form 709.

tax laws, both civil and criminal, and to

by reason of the donor having died within

cities, states, the District of Columbia, and

Signature

3 years of making the gift), an allocation

U.S. commonwealths or possessions for

of the GST exemption at the time of the

As a donor, you must sign the return. If

use in administering their tax laws. We

transfer will only become effective at the

you pay another person, firm, or

may also disclose this information to other

end of the ETIP. For details, see

corporation to prepare your return, that

countries under a tax treaty, to federal

Transfers Subject to an Estate Tax

person must also sign the return as

and state agencies to enforce federal

Inclusion Period (ETIP), previously, and

preparer unless he or she is your regular

nontax criminal laws, or to federal law

section 2642(f).

full-time employee.

enforcement and intelligence agencies to

Part 3—Tax Computation

combat terrorism.

Third-party designee. If you want to

allow the return preparer (listed on the

We may disclose the information on

You must enter in Part 3 every gift you

bottom of page 1 of Form 709) to discuss

your Form 709 to the Department of the

listed in Part 1 of Schedule C.

your 2010 Form 709 with the IRS, check

Treasury and contractors for tax

Column C

the “Yes” box to the far right of your

administration purposes; and to other

You are not required to allocate your

signature on page 1 of your return.

persons as necessary to obtain

available exemption. You may allocate

information which we cannot get in any

If you check the “Yes” box, you (and

some, all, or none of your available

other way for purposes of determining the

your spouse, if splitting gifts) are

exemption, as you wish, among the gifts

amount of or to collect the tax you owe.

authorizing the IRS to call your return

listed in Part 3 of Schedule C. However,

We may disclose the information on your

preparer to answer questions that may

the total exemption claimed in column C

Form 709 to the Comptroller General to

arise during the processing of your return.

may not exceed the amount you entered

review the Internal Revenue Service. We

You are also authorizing the return

on line 3 of Part 2 of Schedule C.

may also disclose the information on your

preparer of your 2010 Form 709 to:

•

You may enter an amount in column C

Form 709 to Committees of Congress;

Give the IRS any information that is

that is greater than the amount you

federal, state and local child support

missing from your return,

•

entered in column B.

agencies; and to other federal agencies

Call the IRS for information about the

for the purpose of determining entitlement

processing of your return or the status of

Column D

for benefits or the eligibility for, and the

your payment(s),

Carry your computation to three decimal

•

repayment of, loans.

Receive copies of notices or transcripts

places (for example, “1.000”).

related to your return, upon request, and

If you are required to but do not file a

•

Respond to certain IRS notices about

Form 709, or do not provide the

math errors, offsets, and return

information requested on the form, or

Part 2—Tax Computation

preparation.

provide fraudulent information, you may

(Page 1 of Form 709)

be charged penalties and be subject to

You are not authorizing your return

criminal prosecution.

preparer to receive any refund check, to

Lines 4 and 5

bind you to anything (including any

You are not required to provide the

To compute the tax for the amount on line

additional tax liability), or otherwise

information requested on a form that is

3 (to be entered on line 4) and the tax for

represent you before the IRS. If you want

subject to the Paperwork Reduction Act

the amount on line 2 (to be entered on

to expand the authorization of your return

unless the form displays a valid OMB

line 5), use the Table for Computing Gift

preparer, see Pub. 947, Practice Before

control number. Books or records relating

Tax, later.

the IRS and Power of Attorney.

to a form or its instructions must be

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Instructions For Form 709 - United States Gift (And Generation-Skipping Transfer) Tax Return - 2010 Page 15

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