2012 Gift Tax Return Tsunami

We expect that 350 estate and gift tax examiners in the IRS will have a hard time reviewing the estimated 500,000 gift tax returns which will be filed for gifts last year.  The Will Doctor will accordingly try to file such returns for our clients on or before the filing date, without extensions.  The thinking is that we should get the three year statute of limitations running early so the IRS can focus on filers between April and October 15, 2013.

Of course, the actual number of estate tax returns filed has dramatically decreased in recent years along with the size of the estate and gift tax exemptions.  Of the filed returns, there are a much smaller number of  taxable returns.  So we can expect that more agents will be available to process the gift taxes this year.  But 500,000 (twice the usual amount)??  We will see.

Posted in Status of Tax Legislation, WillPlan Blog.

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