Understanding gift tax and how much you can gift tax-free is crucial for estate planning. The IRS provides account transcripts for gift tax returns, but obtaining them requires careful completion and submission of Form 4506-T, Request for Transcript of Tax Return. This guide will walk you through the process and key considerations.
The IRS offers a transcript of gift tax returns when Form 4506-T is correctly filled out, submitted with necessary documentation. You can request the transcript either by fax or mail using Form 4506-T. Once the IRS receives and verifies your request (ensuring the taxpayer and representative information matches their records), they will mail a hardcopy transcript to the address on file. Requests that are incomplete or lack sufficient documentation will be rejected, and the requester will receive a notification. There are no fees associated with this service.
Form 4506-T, Request for Transcript of Return, and instructions PDF are available on IRS.gov. Form 4506-T has multiple uses and special attention must be taken when completing the form for a gift tax inquiry. Complete the form using the printed instructions paying close attention to the following:
Completing Form 4506-T for Gift Tax Inquiries
When requesting a gift tax transcript, meticulous attention to detail is essential. Here’s a breakdown of how to complete Form 4506-T specifically for gift tax purposes:
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Lines 1a and 1b: Provide the donor’s information, including their Social Security Number (SSN).
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Lines 2a and 2b: Leave these lines blank. They are not applicable for gift tax transcript requests.
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Line 3: Enter the donor’s current address if they are living. If the donor is deceased, provide the estate representative’s name, title, and address. Ensure the address matches the official IRS record.
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Line 4: Leave this line blank.
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Line 6: Enter “Form 709,” which is the form number for United States Gift (and Generation-Skipping Transfer) Tax Return.
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Line 6 a-c: For gift tax inquiries, 6b is the only valid option. Do not select any other options in items 6-8. Selecting other options will lead to rejection.
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Line 9: Enter the specific tax period you are inquiring about in MMDDYYYY format. If you don’t know the exact tax period, consult the “Written Requests” section below.
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Line for Attestation Clause: The requester must read and agree to the attestation clause on Form 4506-T. The provided box must be checked to have Form 4506-T processed.
Signature and Title Requirements
The individual requesting the transcript must be authorized to receive the information.
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If the taxpayer listed on Line 1 (the donor) is the requester, no further documentation is needed.
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If someone other than the taxpayer shown on Line 1 is requesting the information, the “Title” portion of the signature section must be completed and substantiated with appropriate documentation.
Required Documentation for Different Scenarios
To ensure the IRS releases the gift tax transcript to an authorized party, specific documentation is required depending on who is making the request.
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Personal Representative/Executor/Executrix: If a personal representative, executor, or executrix is signing, include Letters Testamentary, Letters of General Administration, or a similar document from the court authorizing them to act on behalf of the deceased donor’s estate. In the Title section, enter either “Personal Representative,” “Executor,” or “Executrix.”
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Surviving Spouse (No Probate): If there is no probate proceeding and the surviving spouse is requesting the transcript, provide a statement confirming that no probate will be commenced and a copy of the marriage certificate or other similar document proving the spousal relationship. Enter “Spouse” in the Title section.
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Trustee (No Probate): If there is no probate and the estate is administered by a trustee, provide a statement confirming that no probate will be commenced, along with a Certificate of Trust or a complete copy of the Trust Instrument. Enter “Trustee of the _______ Trust” in the Title section, filling in the name of the trust.
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Trust Officer: If a Trust Officer signs the request, the Bank and/or Trust Company must substantiate their authorization to receive taxpayer information, including identifying the specific Trust Officer authorized to act. Enter “Trust Officer” in the Title section.
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Tax Professional (Power of Attorney): If a tax professional signs, provide a copy of the initial Form 2848 submitted to the IRS for the same taxpayer and the same tax year. A new Power of Attorney is not sufficient; the record must be established on the IRS’s Centralized Authorization File (CAF) before sending the transcript request. Enter “Power of Attorney” in the Title section.
Additional Tips and Guidelines
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Avoid Altered Forms: The IRS will not accept altered forms. This includes any use of white-out, pen and ink changes, or type-overs of any kind. Use a fresh form and complete it accurately.
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Mailing/Faxing the Request: The instructions for Form 4506-T include a chart detailing where to mail or fax the request based on the taxpayer’s state of domicile. Ensure you choose the appropriate RAIVS Team location (either Ogden, UT, or Cincinnati, OH).
Written Requests as an Alternative
If you don’t know the specific tax year(s) for which gift tax returns were filed, you can send a written request to the IRS for a gift tax transcript. This method should be reserved for situations where the taxpayer lacks records of when gift tax returns were filed.
The written request must specifically request a determination of “All Gift Tax Returns Filed” for the taxpayer. Use the same fax number or mailing address provided in the Form 4506-T Instructions. The requester must also provide the same substantiating documentation as required for Form 4506-T requests (outlined above). Unsubstantiated written requests will also be rejected.
Important Considerations Regarding Form 2848, Power of Attorney
Submitting a duplicate, incomplete, or unsubstantiated Form 2848 can cause delays or rejection of your transcript request. To minimize these issues, follow these guidelines:
- File only one official Form 2848 for each taxpayer, following the most current instructions. Ensure consistent spelling and address for the taxpayer across all correspondence.
- Send one complete original Form 2848 with substantiation to the CAF Unit as indicated in the Form 2848 instructions. This is the only way the Form 2848 is officially recorded.
- For subsequent correspondence, provide a copy of the official Form 2848, labeled as a “Copy,” without alterations or original signatures. The IRS will electronically verify the information against the original data filed with the CAF Unit.
- Do not send a Form 2848 with future correspondence unless it has been previously sent to the CAF Unit for processing. The IRS records signature dates and other data from the official Form 2848, which will be verified against any new data requests.
- To update a tax professional’s address or phone number on the CAF, do not submit a new Form 2848. Instead, send a written notification with the updated information and the representative’s signature to the location where the original Form 2848 was filed.
- The CAF system is updated only with documents received at the CAF Unit.
- While not mandatory, it is beneficial to check “Other acts authorized” on Line 5a of Form 2848 and write in “Request and Receive IRS Transcripts.”
Navigating Gift Tax Returns and Transcripts
Understanding how much you can gift tax free and obtaining gift tax return transcripts from the IRS requires accuracy and attention to detail. By correctly completing Form 4506-T or submitting a properly documented written request, you can obtain the necessary information for estate planning and compliance with tax laws. Always ensure that all required documentation is included and that you are authorized to receive the taxpayer’s information. Adhering to these guidelines can help you avoid delays and ensure a smooth process.
