April 15 is approaching fast,and the tax man is ready to collect. Just make sure you donâ€™t overlook oneimportant tax return â€“ the one for any taxable gifts in 2012.
If you made any gifts in excessof $13,000 (that number is $14,000 for 2013) to anyone in 2012, then you mustfile a Form 709 Gift Tax Return. Period. In fact, a recent article in Forbes titled â€œDon't Gamble With Gift Tax Returnsâ€considered this matter in detail.
The humble gift tax return isamong the easiest tax document to forget, but itâ€™s also one of the mostimportant to get right. After all, the return is what the IRS uses to assessany possible gift tax. Even if you donâ€™t actually â€œoweâ€ any gift tax, you stillmust file the return.
Gift tax returns that raise redflags or donâ€™t get filed in the first place can be audited just like any taxreturn. No audit is a good audit.
So, if this is new informationto you and you are not ready to file your Form 709, then you can get anextension by filing a Form 8892. Perhaps you need more time to get everythingproperly documented.
The original Forbes article also has some pointerswhen it comes to extensions. However, any gift tax must be paid by April 15, ifany is owed. Otherwise, you will be hit with interest and potential penalties.
This is a hot topic this year, since 2012 was such abig year for gifting. Understanding the complexities of Gifting is just a part of successful estate planning. To ensure a successfulplan, we at IdahoEstate Planning
will: 1) educate youand your helpers; 2) take the time to get to know you, your family, yourdesires, your concerns, your goals, and your potential problems; 3) gladly andpatiently answer questions until you understand the concept or issue; and, 4)based on experience with the problems and results caused by poor planning, helpyou design and implement the plan that fits your concerns and goals. Remember, goodplanning is no accident