IRS Form 709 is used to report taxable gifts to distribute the lifetime use of a person's generation-skipping transfer tax exemption, explains Julie Garber for About.com. The deadline to file the form is April 15 of the year that follows the year a gift or transfer is made.Continue Reading
The federal gift tax is for gift givers to pay, not the gift recipient, according to TurboTax. Taxpayers do not owe tax until they give away more than $5 million during their lifetime, as of 2015. It is possible that amount may be raised for inflation. If a taxpayer is married, his spouse is entitled to $5.43 million in 2015. However, taxpayers may still need to file a return. This is because the annual federal gift tax exclusion allows a taxpayer to give away up to $14,000 during the years 2014 and 2015 to as many individuals as he wishes without those gifts counting against the lifetime tax exemption.
If a taxpayer makes a taxable gift that is in excess of the annual exclusion, he must file IRS Form 709. The form is required even if the taxpayer does not owe gift tax to keep track of the lifetime exemption, notes TurboTax.Learn more about Taxes