The annual gift tax exclusion allows you to give a certain amount of money to someone each year without having to file a gift tax return or pay gift tax. Understanding this exclusion is crucial for effective financial planning. This article provides a comprehensive guide on requesting gift tax return transcripts from the IRS, a critical step in determining your giving limits.
Requesting Gift Tax Return Transcripts from the IRS
To determine how much you’ve given in previous years, you might need to request gift tax return transcripts from the IRS. The IRS provides these transcripts when you correctly complete and submit Form 4506-T, Request for Transcript of Tax Return. This form allows you to request transcripts via fax or mail. The IRS will mail a hard copy of the transcript to the address on file after verifying your information. Incomplete or unsubstantiated requests will be rejected.
Completing Form 4506-T for Gift Tax Inquiries
Form 4506-T has various uses, so careful attention is necessary when completing it for gift tax inquiries. Follow these specific instructions:
- Lines 1a and 1b: Enter the donor’s information, including their Social Security Number (SSN).
- Lines 2a and 2b: Leave these lines blank.
- Line 3: Enter the donor’s current address if living. If the donor is deceased, enter the estate representative’s name, title, and address. The address must match the official IRS record.
- Line 4: Leave this line blank.
- Line 6: Enter “Form 709” to specify a gift tax return.
- Line 6 a-c: Select only option 6b for gift tax inquiries. Do not select any other options in items 6-8.
- Line 9: Enter the tax period in MMDDYYYY format. If unknown, see the “Written Requests” section below.
- Attestation Clause: You must read, agree to, and check the attestation clause box for the form to be processed.
- Signature/Title: The requester must be authorized to receive the information. If the requester is the taxpayer listed on Line 1, no further documentation is needed. If not, complete the Title section and provide supporting documentation (see below).
Required Documentation for Form 4506-T
The individual requesting the information must be authenticated. Different situations require specific documentation:
- Personal Representatives/Executors/Executrices: Provide Letters Testamentary, Letters of General Administration, or a similar court document. Enter your title in the Title section.
- Surviving Spouse (No Probate): Provide a statement that no probate will be commenced and a copy of the marriage certificate or a similar document. Enter “Spouse” in the Title section.
- Trustee (No Probate): Provide a statement that no probate will be commenced and a Certificate of Trust or a copy of the complete Trust Instrument. Enter “Trustee of the _______ Trust” in the Title section.
- Trust Officer: The bank or trust company must provide documentation authorizing the specific Trust Officer to receive taxpayer information. Enter “Trust Officer” in the Title section.
- Tax Professional: Provide a copy of the initial Form 2848, Power of Attorney, submitted to the IRS for the same taxpayer and tax year. A new Power of Attorney is insufficient. Enter “Power of Attorney” in the Title section.
Important: Altered forms (with white-out, pen and ink changes, or typeovers) will not be accepted.
Submitting Your Request
Mail or fax your completed Form 4506-T to the appropriate IRS RAIVS Team in Ogden, UT, or Cincinnati, OH, as directed in the form’s instructions.
Written Requests for Gift Tax Transcripts
If you don’t know the tax year(s) a gift tax return was filed, send a written request to determine “All Gift Tax Returns Filed” for the taxpayer. Use the same fax number or mailing address listed in the Form 4506-T instructions. Include the required documentation as outlined above. Unsubstantiated requests will be rejected.
Key Considerations for Form 2848, Power of Attorney
A duplicate, incomplete, or unsubstantiated Form 2848 can lead to rejection. Ensure you adhere to these guidelines:
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File one official Form 2848 per taxpayer, following the current instructions. Use consistent spelling and addresses for the taxpayer in all correspondence.
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Send the complete original Form 2848 with substantiation to the Centralized Authorization File (CAF) Unit as instructed. This is crucial for recording the form.
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For subsequent correspondence, provide a copy of the official Form 2848 labeled as “Copy” without alterations or original signatures. The IRS will electronically verify the information against the original filed with the CAF Unit.
Contacting the IRS for gift tax transcripts allows you to accurately understand your giving history and plan for future gifting. Accurate completion of the required forms and providing the necessary documentation is crucial for a successful request. Consult a tax professional for personalized guidance.
