Instructions For Form 709 - 2016 Page 18

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Table for Computing Gift Tax
No checks of $100 million or more
accepted. The IRS cannot accept a single
check (including a cashier's check) for
Column A
Column B
Column C
Column D
amounts of $100,000,000 ($100 million) or
more. If you're sending $100 million or
Rate of tax
more by check, you'll need to spread the
Taxable
Taxable
Tax on
on excess
amount
amount
amount in
over amount
payments over two or more checks, with
over
not over—
Column A
in Column A
each check made out for an amount less
than $100 million. The $100 million or
- - - - -
$10,000
- - - - -
18%
more amount limit does not apply to other
$10,000
20,000
$1,800
20%
methods of payment (such as electronic
20,000
40,000
3,800
22%
payments), so please consider paying by
40,000
60,000
8,200
24%
means other than checks.
60,000
80,000
13,000
26%
Signature
80,000
100,000
18,200
28%
100,000
150,000
23,800
30%
As a donor, you must sign the return. If
you pay another person, firm, or
150,000
250,000
38,800
32%
corporation to prepare your return, that
250,000
500,000
70,800
34%
person must also sign the return as
500,000
750,000
155,800
37%
preparer unless he or she is your regular
750,000
1,000,000
248,300
39%
full-time employee.
1,000,000
- - - - -
345,800
40%
Third-party designee. If you want to
allow the return preparer (listed on the
Lines 4 and 5
Determine the tentative tax on the
bottom of page 1 of Form 709) to discuss
applicable exclusion amount using the
your 2016 Form 709 with the IRS, check
To compute the tax for the amount on
rates in the Table for Computing Gift Tax,
the “Yes” box to the far right of your
line 3 (to be entered on line 4) and the tax
and enter the result on line 7.
signature on page 1 of your return.
for the amount on line 2 (to be entered on
Line 10
line 5), use the Table for Computing Gift
If you check the “Yes” box, you (and
Tax.
your spouse, if splitting gifts) are
Enter 20% of the amount allowed as a
authorizing the IRS to call your return
Line 7
specific exemption for gifts made after
preparer to answer questions that may
September 8, 1976, and before January 1,
The applicable credit (formerly unified
arise during the processing of your return.
1977. (These amounts will be among
credit) amount is the tentative tax on the
You are also authorizing the return
those listed in Schedule B, column D, for
applicable exclusion amount. For gifts
preparer of your 2016 Form 709 to:
gifts made in the third and fourth quarters
made in 2016, the applicable exclusion
Give the IRS any information that is
of 1976.)
amount equals:
missing from your return;
Line 13
The basic exclusion amount of
Call the IRS for information about the
$5,450,000, PLUS
processing of your return or the status of
Gift tax conventions are in effect with
Any deceased spousal unused
your payment(s);
Australia, Austria, Denmark, France,
exclusion (DSUE) amount.
Receive copies of notices or transcripts
Germany, Japan, and the United
related to your return, upon request; and
If you are a citizen or resident of the
Kingdom. If you are claiming a credit for
Respond to certain IRS notices about
United States, you must apply any
payment of foreign gift tax, figure the
math errors, offsets, and return
available applicable credit against gift tax.
credit and attach the calculation to Form
preparation.
If you are not eligible to use a DSUE
709, along with evidence that the foreign
amount from a predeceased spouse, enter
taxes were paid. See the applicable
You are not authorizing your return
$2,125,800 on line 7. Nonresidents not
preparer to receive any refund check, to
convention for details of computing the
citizens of the United States may not claim
bind you to anything (including any
credit.
the applicable credit and should enter zero
additional tax liability), or otherwise
Line 19
on line 7.
represent you before the IRS. If you want
Make your check or money order payable
to expand the authorization of your return
If you are eligible to use a DSUE
to “United States Treasury” and write the
preparer, see Pub. 947, Practice Before
amount from a predeceased spouse,
donor's social security number on it. You
the IRS and Power of Attorney.
complete Schedule C—Deceased
may not use an overpayment on Form
The authorization will automatically end
Spousal Unused Exclusion (DSUE)
1040 to offset the gift and GST taxes
three years from the date of filing Form
Amount and enter the amount from line 4
owed on Form 709.
709. If you wish to revoke the
of that schedule on line 7 of Part 2—Tax
authorization before it ends, see Pub. 947.
Computation.
Disclosure, Privacy Act, and Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal
Revenue laws of the United States. We need the information to figure and collect the right amount of tax. Form 709 is used to report
(1) transfers subject to the federal gift and certain GST taxes and to figure the tax, if any, due on those transfers, and (2) allocations of
the lifetime GST exemption to property transferred during the transferor's lifetime.
Our legal right to ask for the information requested on this form is found in sections 6001, 6011, 6019, and 6061, and their
regulations. You are required to provide the information requested on this form. Section 6109 requires that you provide your identifying
number.
Generally, tax returns and return information are confidential, as stated in section 6103. However, section 6103 allows or requires
the Internal Revenue Service to disclose or give such information shown on your Form 709 to the Department of Justice to enforce the
tax laws, both civil and criminal, and to cities, states, the District of Columbia, and U.S. commonwealths or possessions for use in
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