What IRS Form 709 (2025) Is For
IRS Form 709 (2025) is the United States Gift and Generation-Skipping Transfer Tax Return used to report gifts and certain transfers subject to federal gift taxes and GST taxes. This tax form applies to individuals who made gifts exceeding the annual gift tax exclusion of $19,000 per recipient in 2025. You must also file if you made gifts of future interests, want to elect gift splitting with a spouse, or need to allocate GST exemption for transfers subject to the generation-skipping transfer tax.
When You’d Use IRS Form 709 (2025)
You should file Form 709 if you missed the April 15, 2026, deadline or discovered errors on your original return. Filing a late or amended federal gift tax return is necessary to correct reportable gifts, valuation errors, or missed elections. Common reasons include failure to report taxable gifts that exceeded the annual exclusion amount, unreported property transferred, or incorrect treatment of split gifts between spouses during the tax year.
Key Rules or Details for 2025
- Annual Gift Tax Exclusion: The annual exclusion amount for 2025 is $19,000 per recipient. Gifts below this threshold generally do not require filing gift tax returns.
- Lifetime Gift Tax Exemption: The lifetime exemption for 2025 is $13.99 million, applying to both gift and estate tax purposes. This lifetime exemption limits how much you can transfer tax-free over your lifetime.
- Deceased Spousal Unused Exclusion: A surviving spouse may use any deceased spousal unused exclusion when calculating taxable gifts or estate transfers.
- GST Exemption: The generation-skipping transfer exemption matches the lifetime gift tax exemption, allowing you to allocate protection for grandchildren or other skip individuals.
- Gifts to Non-Citizen Spouses: The exclusion for gifts to a non-citizen spouse is $190,000 in 2025.
- Electronic Filing Option: You can now file Form 709 electronically through the IRS website using Modernized e-File, replacing mail-only submissions to the Pershing Road, Kansas City processing center.
- Filing Deadlines: The due date for Form 709 follows the individual income tax return deadline. Returns automatically extend when you file for a personal income tax return extension.
- Legal Holidays and Weekends: If the due date falls on a legal holiday, the filing form is due the next business day.
Browse more tax form instructions and filing guides in our Forms Hub.
Step-by-Step (High Level)
Step 1: Gather Gift Tax Records
Collect prior-year IRS forms and transcripts from your gift tax account to verify total gifts, including only those previously reported. Confirm that you and your spouse accurately reported all taxable gifts for the calendar year.
Step 2: Complete the Correct 2025 Form 709
Use the official 2025 version of Form 709. Fill out all required schedules, including Schedule A for individual gifts, Schedule B for prior gifts, and Schedule C for split gifts. Always ensure you complete schedules using the correct valuation and tax computation methods.
Step 3: Include Adequate Disclosure Statements
Prepare detailed statements describing property transferred, fair market value, and relationships. Include these attachments for certain gifts or transfers subject to future interests to ensure adequate disclosure under IRS rules.
Step 4: File Gift-Splitting Consent Forms
If you split gifts with your spouse, both must sign Part III of the joint gift tax return. The donor spouse must file even when total gifts do not exceed the annual exclusion amount.
Step 5: Submit and Retain Copies
File gift tax returns electronically or mail your paper return to the Kansas City center at the address provided on the IRS website. Keep copies of all filing forms, payment vouchers, and supporting documents for tax purposes and lifetime exemption tracking.
Learn more about federal tax filing through our IRS Form Help Center.
Common Mistakes and How to Avoid Them
- Missing GST Elections: Taxpayers often forget to allocate GST exemption. Always review all generation-skipping transfer elections before submitting Form 709 to prevent wasted GST protection.
- Inadequate Disclosure: Returns missing valuation details delay the three-year statute of limitations. Include full descriptions and appraisals for property transferred or life estate interests.
- Incorrect Schedule A Entries: Many filers confuse entire and partial interest gifts. Always separate outright gifts, split gifts, and future interests under the correct section.
- Forgetting Gift-Splitting Requirements: Both spouses must consent and file when electing gift splitting, even if no tax liability exists.
- Omitting Prior Period Gifts: Excluding total gifts from prior years can distort lifetime exemption tracking. Verify that Schedule B matches earlier IRS forms before submission.
- Ignoring Deadlines: Failure to file by the due date can trigger 5 percent monthly penalties. Use Form 8892 or an automatic extension request if you need more time.
Learn more about how to avoid business tax problems in our guide on How to File and Avoid Penalties.
What Happens After You File
Once you file Form 709, the Internal Revenue Service reviews your submission at the Kansas City processing center. Complex gift and GST returns may take several months to process. If you owe additional tax, the IRS will issue balance due notices with instructions for direct payments. You can request an installment plan using Form 9465 if you cannot pay the tax owed in full. Interest accrues at seven percent annually for 2025, and the failure-to-file penalty increases by five percent each month, up to a maximum of twenty-five percent.
FAQs
Can I still file IRS Form 709 (2025) after missing the April 15, 2026, deadline?
You can file late using the same tax form, but penalties apply if you owe tax. Filing late ensures accurate reporting of reportable gifts and prevents higher interest accumulation.
Does the annual gift tax exclusion cover all gifts made in 2025?
No, only gifts up to $19,000 per recipient are excluded. Gifts above the annual exclusion require you to file Form 709 and may reduce your lifetime exemption amount.
How does the generation-skipping transfer tax apply to my 2025 gifts?
The generation-skipping transfer tax applies when you give gifts to grandchildren or unrelated individuals who are more than one generation younger. You may allocate the GST exemption to protect transfers subject to GST taxes.
What if I want to file a joint gift tax return for 2025?
You cannot file a true joint return, but you may elect gift splitting with your spouse. Both you and your spouse must sign to elect split gifts and file separate returns for federal gift taxes.
How does the deceased spouse's unused exclusion affect my filing?
A surviving spouse may apply any unused exclusion for the deceased spouse to increase the available lifetime exemption. This adjustment helps reduce future estate and gift tax liability for larger estates.
How do I report certain gifts to qualifying charities?
Report charitable transfers under Schedule A. Even though such gifts are deductible, the IRS requires disclosure on your federal gift tax return when filing for other taxable gifts within the same tax year.
How can I make direct payments or request an extension to file Form 709?
You can send direct payments using an IRS payment voucher or make electronic payments online. To extend your due date, file Form 8892 with your individual income tax return for an automatic extension.
