This article was originally posted on Steve Leimberg’s Estate Planning Email Newsletter as Archive Message #2858.
Gift tax returns are often incredibly complicated with layers of issues, technical decisions, and disclosure requirements. 2020 created additional and sometimes novel gift tax reporting considerations.
This discussion underscores the imperative for collaboration among the estate planning practitioner and the tax preparer. Disclosures should be carefully constructed in order to bolster the client’s position against a challenge by the IRS as to the operation of the valuation adjustment clause. The gift tax return preparer should seek counsel’s review and comment prior to finalizing the gift tax return for filing with the IRS. This will likely increase the costs of preparing and filing the gift tax return, but it will be well worth it.
To read the full article, click here.
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