When filing your taxes, there are a few things to remember. One is that gift tax returns are automatically extended with your 1040. If you plan on giving a gift this year, you don’t have to worry about rushing to file the tax return. Instead, you can take your time and ensure everything is done correctly.
If you’re like most people, the last thing on your mind during the holiday season is filing a gift tax return. But if you gave more than $14,000 in gifts to any person in 2017, the IRS requires you to file a gift tax return. The good news is that if you need to file a gift tax return, it’s automatically extended until April 15 – just like your regular 1040.
So if you’re scrambling to get your taxes done before the end of the year and realize you need to file a gift tax return, don’t panic! Just know that you have a little extra time.
Do You Need to Extend a Gift Tax Return?
No, you do not need to extend a gift tax return. The gift tax is a tax on property transfer from one individual to another. It is imposed on the donor, not the recipient of the gift.
Gift Tax Return Automatic Extension
The IRS has announced that it will automatically extend the due date for filing gift tax returns from April 15 to June 15. This extension is available to all taxpayers, regardless of whether they file their taxes electronically or on paper. This extension applies only to gift tax returns, not to any other type of tax return.
If you need more time to file your income tax return, you must request an extension by April 15. The extension only applies to the return filing, not the tax payment. If you owe gift tax, you should still pay the tax by April 15. Interest and penalties will accrue on any unpaid gift tax starting April 16.
Closing
The IRS automatically extends the due date for filing a gift tax return when filed with a taxpayer’s income tax return. The extension is for six months, which means the gift tax return is due on October 15.
