-
September 26th, 2011Efile Tax Returns
No items matching your keywords were found.
gift tax return filing requirements
No items matching your keywords were found.
Account limit of 2098 requests per hour exceeded. Healthy Body = Functional Body. Hollywood Look Side Effect: Healthy Function
Enrolled Agent Job Opportunities With Taxpayers Who Gifted Real Estate
To publicize your practice as an IRS enrolled agent is as simple as conducting some public relations measures. The best place to start is dissemination of valuable tax considerations that are often neglected by most people. To spread around these items, enrolled agents use their social media sites or press releases.
An example of one important tax detail is a subject of keen interest to the IRS. This is the gifting of real estate. The IRS is aware that such gifts frequently occur without required gift tax reporting and is engaging in a considerable effort to uncover these situations. The action has so far maintained a low profile, but learning of it could inspire taxpayers to start reporting these gift tax situations before the IRS catches them. Therefore, conveying this tax matter is a public service and presents enrolled agent job opportunities.
The IRS has gathered evidence about real estate transfers in 15 states, including California. By comparing the data to gift tax returns, the IRS is certain to uncover delinquent filing and payment of gift tax.
An IRS estimate presently reports that between 60 percent and 90 percent of property transfers as gifts were not reported. These situations include parents who buy homes for their grown children or provide substantial down payments. The work to correct tax under-reporting appears significant for California enrolled agents alone.
Even if no gift tax is payable on many returns, the giving triggers a reduction in the lifetime credit for gift and estate tax. This means a substantial amount of estate tax is accruing for payment in the future. The present lifetime exemption is $5,000,000 but Congress will have to tinker with the rules again in the next couple of years.
Basic knowledge about gift tax starts with enrolled agent exam preparation. The maximum annual gift of one person to another that escapes tax reporting is indexed to cost-of-living escalations but for 2011 remains at only $13,000. Any gifts to someone exceeding that amount per year are reported in gift tax return filing.
The IRS has received information on real estate transactions from Connecticut, Florida, Hawaii, Nebraska, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia, Washington and Wisconsin. Potential taxpayer trouble appears to extend beyond enrolled agent California matters. Some examples of transactions that have the appearance of gifts are Quitclaim Deeds and Warranty Deeds that are not secured by liens.
No exceptions exist to filing gift tax returns for transfers between family members. Whenever the value of gifted property exceeds the $13,000 annual exemption, a return is required. This reporting is mandatory even if some of the lifetime credit is applied so that no tax is paid. Some enrolled agent tax resolution is clearly expected when many taxpayers learn of their precarious situations.
IRS Circular 230 Disclosure
Pursuant to the requirements of the Internal Revenue Service Circular 230, we inform you that, to the extent any advice relating to a Federal tax issue is contained in this communication, including in any attachments, it was not written or intended to be used, and cannot be used, for the purpose of (a) avoiding any tax related penalties that may be imposed on you or any other person under the Internal Revenue Code, or (b) promoting, marketing or recommending to another person any transaction or matter addressed in this communication.
About the Author
Tags: business, debt, federal plus, gift tax return filing requirements, income, tax
