Form 709 may or may not delivered, will I be penalized?

[James zhou]

I would like to ask that after my 709gift tax return filed ,  certified mail was mailed on 4/6/2024, the tracking of usps arrived at the MO state facility on 4/9/2024 and has been displayed in transit and delayed since then. It's 5/3/2024 now, and it's still the same in transit. . I'm worried about losing it. Asked the usps, said it probably arrived and forgot to scan it. What should I do, please? I'm afraid the irs won't get it and I'll be penalized a lot. Because my father gifted me the house in oct ,2023 , the amount is quite large of $900,000. Should I send form 709again? But it may be doubled and be penalized for late filing?  Still worried. 

[Mike9241]

as the donee, you have nothing to worry about even if the IRS doesn't get the return. Filing the return is the responsibility of the donor.  If no tax is due, then there is no penalty for late filing or late payment. Also, there is reasonable because you have documentation to mailing. 

[James zhou]

Thanks for your reply.

I am  worried for my father , he is the donor. What is the best way should my farther do now ? He has other real estate too, and don’t want to get penalized for that ? Is any way to find out if IRS received the 709form? 

[James zhou]

When I google it , it says Failure to pay the gift tax on time will result in a penalty of 0.5 percent per month of the amount due, up to a total of 25 percent. 
but you told me if no tax due , there will be no penalty for late filling or late payment. 
I am still confused.

[xmasbaby0 · Accepted solution]

Unless your father has exceeded his LIFETIME limit of gifts given, he will owe no tax on the generous gift he gave you.    Sending in the 709 form just lets the IRS start keeping track of gifts he has given so that if he someday exceeds the lifetime limit he will pay gift tax.

But if he is truly worried that the IRS has not received the Form 709, he can mail it again.  It cannot be e-filed.

Gifts given to family members, friends or other individuals are not deductible.   Gifts received are not taxable to the person who received the gift, and are not entered on a tax return.

If your gift exceeds the yearly limit ($17,000 per individual)  imposed by the gift tax rules, then you will need to complete a Form 709 gift tax form and send it to the IRS, although it is very unlikely that you will owe any tax.    In 2024 that yearly limit will increase to $18,000.

TurboTax does not support Form 709.  It is not an income tax form and would not be included as part of an income tax return.

Here is a link to the form:

https://www.irs.gov/pub/irs-pdf/f709.pdf

https://turbotax.intuit.com/tax-tips/estates/the-gift-tax-made-simple/L5tGWVC8N

[James zhou]

Thank you for your reply. I would like to know if his penalty is based on the amount of the gift or the tax due in case of failure to file the 709 form. I read online about a 5% monthly fine up to 25%. If it is based on the tax due, it must be 0. My father only gave me $ 900,000  in total.

Also, how do we know if the IRS has received my form?  I want to make sure they didn’t receive 709form, then I will send it again. 

[xmasbaby0 · Accepted solution]

Your father owes no tax.  There is no penalty.   Unless he exceeds a lifetime gift limit of over 12 million dollars, there is no tax owed for the gift he gave you.    Have your father check his online account with the IRS to see if it shows the Form 709 was received.  Or he can call the IRS.

https://www.irs.gov/payments/your-online-account

To  call the IRS:IRS:  800-829-1040  hours 7 AM - 7 PM local time Mon-Fri

Listen to each menu before making the selection.

First choose your language. Press 1 for English.

Then do NOT choose the first choice re: "Refund", or it will send you to an automated phone line.

Instead, press 2 for "personal income tax".

Then press 1 for "form, tax history, or payment".  

Then press 3 "for all other questions."

Then press 2 "for all other questions."  It should then transfer you to an agent.

[James zhou]

thanks。

So if he's sending Form 709 again now in May 2024, it will be after 4/15 /24deadline. Won't IRS charge the penalty for late filing?

[xmasbaby0 · Accepted solution]

He filed  the Form 709 originally BEFORE that deadline and should have the receipt from the mailing service that proves it was filed before 4-15-2024 if there are any issues regarding the date he sent it in.  Make sure he hangs on to that receipt from the mailing service.     Since the only way to file a Form 709 is by mail, if he decides to re-send it, he could include a copy of the mail service receipt that shows it was filed on 4-6-2024.

[James zhou]

I just sign in my IRS Online Account. It only shows 1040form information. I didn’t see mailed form 3520 which is delivered 4/11/2024 and I didn’t see form 709 which is not sure if it’s delivered either. Will IRS account really shows those form 3520 and 709 except form1040?  
Otherwise, I have to call to find out.

[James zhou]

I read online about a 5% monthly fine up to 25% for failure to file709.

I would like to know the penalty is based on the amount of the gift or the tax due after the lifetime exemption in case of failure to file the 709 form？

[xmasbaby0]

I am not sure if the online account will show Form 709 for your dad.   It will not be in your IRS account--if it is in an online account with the IRS it will be in your father's online account.   Also not sure how often those online accounts update, and it seems all of this is fairly recent--during April 2024.   Your dad can call if you are worried whether the IRS received the form.