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Retirement Planning
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Gift Tax

Hello,

I am a physician making about 250k and have been giving incremental gifts to an extraordinarily close family friend (that have totaled just a little over $13k) because of recent unemployment and the needs of taking care of a large family. (2010 tax year)

a) I assume I have to file a Form 709 because I passed the $13K limitation for 2010?
b) Given your experience, given my tax bracket and my overage (about $500 over the max limitation), am I more likely to be audited?

Thank you for your time,
R

Zip Code: 01801

Re: Gift Tax

Based on the facts you have presented, it would appear that technically a gift tax return should be filed. However,there may be additional facts that might change this conclusion. In addition, on a practical level, given the small "overage" the consequences of not filing are probably outweighed by the time and expense involved in filing. I am happy to discuss this further if you wish.

Zip Code: 02451