Gift Tax Biggest Reporting Issues and Mistakes
Author: Klaralee R. Charlton
| CPE Credit: |
2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC |
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2028 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
Gift tax reporting is complex, and common mistakes can lead to audits, penalties, and unintended tax consequences. This course examines the most frequently misreported gift tax transactions and provides guidance on avoiding costly errors.
Participants will explore key reporting challenges, including gift splitting, Crummey transfers, generation-skipping tax (GST) allocation, annual exclusion misapplications, and the proper allocation of the deceased spouse’s unused exclusion (DSUE). The course will also cover reportable transactions related to discounted gifts, including valuation considerations, IRS scrutiny of valuation discounts, and best practices for properly reporting discounted transfers.
Practitioners will gain the knowledge needed to ensure accurate and compliant Form 709 filings while minimizing tax risks for clients. This course is ideal for tax professionals advising clients on gift tax planning and reporting.
Publication Date: July 2025
Topics Covered
- Review of Current Gift and Estate Tax Exemption Rules
- Gift Tax Filing Rules & Updated Form
- Valuation and Adequate Disclosure Rules
- Allocating the Annual Exclusion and Generation Skipping Tax Exemption
- Best Practices for Crummey Trust Transfers
- Non-Citizen Gifting and New Form 709-NA
- Electing Gift Splitting to Maximize Annual Exclusion
- Portability and Post-death Gifting by Spouse
Learning Objectives
- Identify common gift tax reporting errors, including mistakes in gift splitting, Crummey transfers, and generation-skipping tax (GST) allocation
- Identify the proper application of the annual gift tax exclusion and the allocation of the deceased spouse’s unused exclusion (DSUE)
- Identify the tax implications and reporting requirements for discounted gifts, including valuation considerations and potential IRS scrutiny
- Determine best practices for accurately completing Form 709 to ensure compliance and minimize audit risk
- Explain how to apply gift tax rules to properly report complex transactions while optimizing tax benefits for clients
Level
Intermediate
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
Basic understanding of gift and estate tax.
Advance Preparation
None
