For legal professionals, obtaining accurate financial documentation is crucial in estate planning, tax law, and related fields. When dealing with gift tax matters, access to gift tax return transcripts from the IRS can be indispensable. This guide provides lawyers with a clear understanding of the IRS guidelines and procedures for requesting these transcripts, primarily through Form 4506-T, Request for Transcript of Tax Return.
The IRS offers the ability to request an account transcript for gift tax returns by submitting Form 4506-T, ensuring it is correctly filled out and substantiated. Requests can be made via fax or mail using this form. Upon successful receipt and verification, which includes matching taxpayer and representative details with the submitted form, the IRS will mail a hard copy transcript to the address of record. It’s important to note that incomplete or unsubstantiated requests will be rejected, and the requester will receive a notification. There are no fees associated with this service.
Form 4506-T, Request for Transcript of Return, and instructions PDF are readily available on IRS.gov. Form 4506-T serves multiple purposes, so meticulous attention is required when completing it specifically for a gift tax inquiry. Lawyers must adhere to the printed instructions and pay close attention to the following lines:
Key Guidelines for Completing Form 4506-T for Gift Tax Transcripts
Lines 1a and 1b: These lines are designated for the Donor’s information, including their Social Security Number (SSN). It is imperative to enter the donor’s details here as the transcript relates to their gift tax return.
Lines 2a and 2b: These lines should be left blank when requesting a gift tax transcript. They are not relevant for this specific type of request.
Line 3: This section requires the Donor’s current address if they are living. If the donor is deceased, enter the estate representative’s name, title, and address. Crucially, the address provided must precisely match the official IRS record to avoid processing delays or rejection.
Line 4: This line should be left blank as it is not applicable to gift tax transcript requests.
Line 6: In this section, specify the tax form for which you are requesting a transcript. For gift tax returns, enter “Form 709.” This clearly indicates to the IRS the type of transcript being requested.
Line 6 a-c: For gift tax transcripts, the ONLY option available is 6b, “Gift Tax.” It is essential to NOT select any other options in items 6-8, as this will lead to processing errors or rejection of the request.
Line 9: Enter the relevant tax period (MMDDYYYY) for which the gift tax transcript is needed. If the tax period is unknown, alternative methods for written requests, detailed further below, should be considered.
Attestation Clause: The requester is required to read and agree to the attestation clause on Form 4506-T. Checking this box is mandatory for Form 4506-T to be processed. Failure to check this box will result in automatic rejection.
Signature/Title Requirements: The IRS mandates that the Requester must be authorized to receive the requested information. If the taxpayer listed on Line 1 (the donor) is also the requester, no additional documentation is needed for authorization. However, if the Requester is someone other than the donor, the Title portion of the signature section must be completed and substantiated with appropriate documentation.
Required Documentation for Authorized Representatives
The IRS requires authentication of any individual requesting taxpayer information. Depending on the requester’s relationship to the donor, specific documentation is necessary:
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Personal Representative/Executor/Executrix: If an estate representative is signing, Letters Testamentary, Letters of General Administration, or a similar court-issued document must be provided. In the Title section, enter “Personal Representative,” “Executor,” or “Executrix,” as applicable.
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Surviving Spouse (No Probate): If there is no probate and a surviving spouse is requesting the data, include a statement affirming that no probate will commence. Additionally, a copy of the marriage certificate or similar document proving spousal status is required. Enter “Spouse” in the Title section.
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Trustee (No Probate): If the estate is managed under a Trustee without probate, a statement confirming no probate will occur and either a Certificate of Trust or a complete copy of the Trust Instrument must accompany the request. Enter “Trustee of the _______ Trust” in the Title section, filling in the trust name.
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Trust Officer: When a Trust Officer signs, the Bank and/or Trust Company must validate the Trust Officer’s authorization to receive taxpayer information, including identification of the specific Trust Officer. “Trust Officer” should be entered in the Title section.
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Tax Professional (Power of Attorney): If a tax professional is making the request, a copy of the initial Form 2848 (Power of Attorney) previously submitted to the IRS for the same taxpayer and tax year is required. A new Power of Attorney is insufficient; the Power of Attorney must be already on record with the IRS’s Centralized Authorization File (CAF). Refer to the section below, “A Note about Form 2848, Power of Attorney,” for further important details. Enter “Power of Attorney” in the Title section.
General Tip: The IRS strictly prohibits altered forms. Any alterations, including white-out, pen and ink changes, or type-overs, will lead to rejection of the Form 4506-T.
The Form 4506-T instructions provide a chart detailing where to mail or fax the request based on the taxpayer’s domicile state. Requests should be directed to the RAIVS Team in either Ogden, UT, or Cincinnati, OH, as specified in the instructions.
Written Requests as an Alternative
In situations where the tax year(s) for which gift tax returns were filed are unknown, a written request to the IRS is an acceptable alternative. This written request must explicitly ask for a determination of “All Gift Tax Returns Filed” for the taxpayer. The written request should be sent to the same fax number or mailing address outlined in the Form 4506-T Instructions. Importantly, the written request must also include the same substantiating documentation as required for Form 4506-T requests to validate the requester’s authority. Unsubstantiated written requests will also be rejected.
A Note About Form 2848, Power of Attorney
Form 2848, Power of Attorney PDF is critical for tax professionals. Errors or issues with Form 2848 are a common cause for rejection of information requests. To minimize rejections when using Form 2848 in conjunction with Form 4506-T, consider these key points:
- File a Single, Official Form 2848: File only one official Form 2848 per taxpayer, adhering to the most current IRS instructions. Maintain consistent spelling and address for the taxpayer across all correspondence.
- Submit Complete Original to CAF Unit: Send one complete original Form 2848, along with all required substantiation, to the CAF Unit at the address specified in Form 2848 instructions. This is the sole method for officially recording a Power of Attorney with the IRS.
- Use Copies for Subsequent Requests: For any future correspondence with the IRS concerning the same taxpayer, provide a copy of the officially filed Form 2848. Do not make any alterations, provide original signatures, or submit a new original. Clearly label it as “Copy.” The IRS will electronically verify the filed Form 2848 using the CAF system.
- Avoid Premature Form 2848 Submissions: Do not submit a Form 2848 with a request if it has not yet been sent to the CAF Unit for processing. The CAF system verifies data against recorded information, including signature dates.
- Updating CAF Information: To update a tax professional’s address or phone number on the CAF system, do not file a new Form 2848. Instead, send written notification with the updated information and the representative’s signature to the location where the original Form 2848 was filed.
- CAF System Updates: The CAF system is exclusively updated from documents received directly at the CAF Unit.
- “Request and Receive IRS Transcripts” Authorization: While optional, checking “Other acts authorized” on Line 5a of Form 2848 and writing in “Request and Receive IRS Transcripts” can be beneficial for clarity and explicit authorization.
By meticulously following these guidelines, legal professionals can efficiently and successfully obtain necessary gift tax return transcripts from the IRS for their clients, ensuring accurate and comprehensive handling of gift tax related legal matters.
