What IRS Form 709 (2015) Is For

IRS Form 709 (2015) is the United States Gift (and Generation-Skipping Transfer) Tax Return used to report gifts made during calendar year 2015 that exceed the annual exclusion amount, and to calculate any gift or generation-skipping transfer (GST) tax due. You must file this form if you gave gifts totaling more than $14,000 to any one person during 2015 (other than to your U.S. citizen spouse), made any gifts of future interests regardless of amount, or need to split gifts with your spouse (IRS Instructions for Form 709 (2015)).

When You'd Use Form 709 for 2015 (Late or Amended Filing)

You would file a late 2015 Form 709 if you recently discovered you had unreported gifts from 2015, received an IRS notice about missing gift tax returns, or learned through estate planning review that previous gifts weren't properly reported.

Common scenarios include receiving IRS correspondence requesting missing returns, discovering during audit that gifts weren't disclosed, or filing to start the statute of limitations running on adequately disclosed gifts. Since there's no separate amended form (Form 709-X doesn't exist), you file a corrected Form 709 clearly marked "Amended" or "Supplemental" with an explanation of changes.

Late filing may trigger penalty and interest charges, but the IRS may abate penalties for reasonable cause (IRS Instructions for Form 709 (2015)).

Key Rules Specific to 2015

For 2015, the annual gift exclusion remained at $14,000 per donee for present interest gifts, while the exclusion for gifts to non-U.S. citizen spouses increased to $147,000.

The lifetime gift and estate tax exemption (basic exclusion amount) was $5,430,000, with a corresponding basic credit amount of $2,117,800. The generation-skipping transfer tax exemption was also $5,430,000. Both gift and GST tax rates topped out at 40% (IRS Instructions for Form 709 (2015)).

These amounts were significantly lower than current levels, making 2015 a year when more taxpayers may have inadvertently triggered filing requirements.

Step-by-Step (High Level)

• Gather tax transcripts: Request Form 4506-T to obtain gift tax account transcripts and verify what the IRS has on file for 2015
  
  
• Complete Form 709 (2015): Use the correct year form available at IRS.gov, marking clearly as "Amended" if correcting a prior filing
  
  
• Attach required schedules: Complete Schedules A (gift computation), B (elections), C (split gifts if applicable), and D (GST tax) as needed
  
  
• Include explanations: Attach detailed explanations for amendments, adequate disclosure statements for complex gifts, and valuation documentation
  
  
• Mail to Cincinnati: Send completed return to IRS Cincinnati, OH 45999 (electronic filing wasn't available for 2015 gift tax returns)
  
  
• Keep copies: Maintain copies of all forms, schedules, attachments, and proof of mailing for your records
  
  

Common Mistakes and How to Avoid Them

• Failing to file when required: Don't assume small gifts under $14,000 are exempt—future interest gifts and gift-splitting elections require filing regardless of amount
  
  
• Inadequate disclosure: Include complete property descriptions, appraisals or valuation methods, donee relationships, and trust details to start the statute of limitations running
  
  
• Gift-splitting errors: Both spouses must file separate returns and the consenting spouse must sign; you cannot split gifts if already received an IRS deficiency notice
  
  
• Valuation discount documentation: Answer "Yes" to Schedule A's valuation discount question and attach detailed explanations for any marketability, minority interest, or other discounts claimed
  
  
• Missing GST elections: Don't overlook generation-skipping consequences—allocate GST exemption even for gifts under annual exclusion to skip persons
  
  
• Wrong tax year forms: Always use the 2015 version of Form 709 for 2015 gifts; using current-year forms creates processing delays and errors
  
  

What Happens After You File

The IRS typically processes gift tax returns within 6-12 weeks, though late-filed returns may take longer during peak seasons.

You'll receive acknowledgment of receipt and any balance due notices if additional tax is owed. If you owe tax, payment options include full payment with the return, short-term payment plans (180 days or less), or long-term installment agreements using Form 9465 (IRS.gov).

Penalty and interest charges accrue from the original due date (April 15, 2016 for 2015 returns), but you can request reasonable cause abatement by responding to penalty notices with explanations.

If the IRS questions your return, you'll receive examination notices and have appeal rights through the Office of Appeals and eventually Tax Court (IRS Instructions for Form 709 (2015)).

FAQs

Can I still file my 2015 Form 709 now, years later?

Yes, there's no statute of limitations preventing late filing, though penalties and interest will apply. Filing is still beneficial to start the statute of limitations running and comply with reporting requirements.

How much are the penalties for filing my 2015 return late?

Late filing penalty is 5% per month of unpaid tax (maximum 25%), plus late payment penalty of 0.5% per month. Interest compounds daily on both tax and penalties from the original April 15, 2016 due date (IRS.gov).

Do I need to file anything with my state for 2015 gifts?

Most states don't impose separate gift taxes, but check your 2015 state requirements. States like Connecticut had gift taxes that were later repealed, so verify the rules that applied in 2015.

Can I get transcripts of my 2015 gift tax filings?

Yes, use Form 4506-T to request gift tax account transcripts from the IRS. Allow 75 calendar days for processing and include the donor's SSN with "Form 4506 Request" notation (IRS.gov).

What if I discover I missed reporting other years too?

File separate Form 709 returns for each year with unreported gifts. Consider consulting a tax professional to review all years and develop a comprehensive compliance strategy.

Is there a statute of limitations for the IRS to challenge my 2015 gifts?

Without adequate disclosure, there's no statute of limitations. With proper adequate disclosure on a timely-filed return, it's generally three years from filing (IRS Instructions for Form 709 (2015)).

Should I hire a professional for my late 2015 filing?

Consider professional help for complex gifts, valuation discounts, generation-skipping transfers, or if you owe significant tax. The rules are intricate and mistakes can be costly.

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