What IRS Form 709 (2019) Is For

IRS Form 709 (2019) is the United States Gift (and Generation-Skipping Transfer) Tax Return used to report gifts exceeding the annual exclusion amount and certain generation-skipping transfers made during calendar year 2019 (IRS Instructions for Form 709 (2019)). You must file this form if you made gifts totaling more than $15,000 to any individual during 2019, gave any future interest gifts regardless of amount, or elected to split gifts with your spouse.

When You'd Use Form 709 for 2019 (Late or Amended Filing)

You may need to file a late 2019 Form 709 if you received an IRS notice about unfiled gift tax returns, discovered you should have reported gifts from that year, or need to start the three-year statute of limitations period for gift valuation purposes. The IRS can assess gift taxes indefinitely if no return is filed with adequate disclosure, making late filing beneficial even years after the original due date (IRS Regulations section 301.6501(c)-1).

Common scenarios include receiving CP notices for missing returns or realizing unreported transfers during estate planning reviews.

Key Rules Specific to 2019

For 2019, the annual gift exclusion was $15,000 per recipient ($155,000 for gifts to non-citizen spouses), and the lifetime gift and estate tax exemption was $11,400,000 with a basic credit amount of $4,505,800 (IRS Instructions for Form 709 (2019)).

The generation-skipping transfer tax exemption was also $11,400,000 for 2019. The top tax rate for gifts and generation-skipping transfers remained at 40%.

These amounts differ significantly from current limits, so ensure you use the correct 2019 form and apply 2019 thresholds when calculating taxable gifts.

Step-by-Step (High Level)

• Gather records: Collect all 2019 gift documentation, property valuations, and any relevant tax transcripts using Form 4506-T
  
  
• Complete the form: Use the 2019 version of Form 709 specifically, not a current-year form, and include all required schedules (A, B, C, D as applicable)
  
  
• Attach supporting documents: Include appraisals for hard-to-value gifts, trust documents for trust transfers, and any DSUE elections from deceased spouses
  
  
• File at correct address: Mail to Kansas City, MO for original returns or Florence, KY for amended returns (IRS Instructions for Form 709 (2019))
  
  
• Keep copies: Retain all filed forms and supporting documentation for your records
  
  

Common Mistakes and How to Avoid Them

• Using wrong year's form: Always use the 2019 Form 709 for 2019 gifts, as exclusion amounts and tax rates differ by year
  
  
• Inadequate gift disclosure: Provide detailed descriptions, valuations, and relationships to start the statute of limitations period per IRS Regulations section 301.6501(c)-1
  
  
• Missing spouse signatures: Both spouses must sign when electing gift splitting, and the non-filing spouse must consent on line 18 (IRS Instructions for Form 709 (2019))
  
  
• Incorrect valuation dates: Use fair market value as of the gift date, not current values or original purchase prices
  
  
• Overlooking generation-skipping implications: Report direct skips to grandchildren or skip persons on both Schedule A and Schedule D
  
  
• Filing incomplete schedules: Complete all applicable sections—returns missing required information will not be processed (IRS Instructions for Form 709 (2019))
  
  

What Happens After You File

The IRS typically processes gift tax returns within standard timeframes, though late returns may take longer due to additional review procedures.

You may receive acknowledgment letters, requests for additional documentation, or notices if examination is warranted.

If you owe tax, payment options include installment agreements (Form 9465) available through IRS procedures.

The three-year statute of limitations begins running from the filing date if gifts are adequately disclosed per section 6501.

You have appeal rights if you disagree with any IRS determinations through the IRS Independent Office of Appeals process.

FAQs

Is there a penalty for filing Form 709 late if no tax is owed?

Section 6651 imposes late filing penalties only when tax is due, though you should still file to start the statute of limitations period (IRS Instructions for Form 709 (2019)).

Can I still get transcripts for 2019 gift tax returns?

Yes, use Form 4506-T to request tax transcripts from the IRS, though processing times may vary for older years.

How long do I have to claim a refund from 2019?

The refund statute of limitations is generally three years from the filing date or two years from when tax was paid, whichever is later, per section 6511.

What if I discover additional 2019 gifts after filing?

File an amended Form 709 marked "Amended" at the top and mail to Florence, KY with the original return pages attached (IRS Instructions for Form 709 (2019)).

Can the IRS still audit my 2019 gifts if I file late?

Yes, but filing with adequate disclosure starts the three-year statute of limitations under section 6501, providing eventual protection against future challenges.

Do I need to report gifts that were under the $15,000 annual exclusion?

Only if they were future interest gifts, you're electing gift splitting, or the gifts were part of a larger transfer exceeding the exclusion amount (IRS Instructions for Form 709 (2019)).

How do I request an extension for filing Form 709?

Use Form 8892 for an automatic 6-month extension, or any extension granted for your income tax return automatically extends your gift tax return filing deadline (IRS Instructions for Form 709 (2019)).

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