Filing a gift tax return may seem like a costly hassle, but it’s important to do it right. A properly prepared gift tax return gets the three-year statute of limitations period running, the significance of which is discussed below.
Statutes of limitations are laws that establish time limits within which the government must act. Until the statute of limitations period expires, the value of a gift that is disclosed on a gift tax return may be challenged by the IRS, and a gift tax return assessed.
However, that statute of limitations period won’t run if a gift is not “adequately disclosed on …read more
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