Understanding Federal Tax on Gifts: How to Obtain Your Gift Tax Return Transcript from the IRS

Navigating federal taxes can be complex, especially when it involves gifts. The Federal Tax On Gifts is a levy imposed by the United States government on the transfer of property by one individual to another while receiving nothing, or less than full value, in return. Whether you’re an attorney assisting clients with estate planning, a financial advisor managing wealth transfers, or an individual needing to understand past gift tax filings, accessing accurate records is crucial. One essential document in this process is the gift tax return transcript from the Internal Revenue Service (IRS).

This article provides a comprehensive guide on how to obtain your federal gift tax return transcript from the IRS. We will walk you through the process of using Form 4506-T, Request for Transcript of Tax Return, and explain alternative methods like sending a written request. Understanding these procedures ensures you can efficiently access the information you need for compliance, audits, or historical reviews related to the federal tax on gifts.

Utilizing Form 4506-T to Request Your Gift Tax Transcript

The most common method for requesting a gift tax return transcript is by using Form 4506-T. This form allows you to request various types of tax transcripts, and it’s specifically applicable for gift tax returns (Form 709). Here’s a step-by-step guide on correctly completing Form 4506-T for gift tax purposes:

Completing Form 4506-T for Gift Tax Returns

Accurate completion of Form 4506-T is paramount to avoid rejection and ensure timely processing. Pay close attention to each line item, especially when requesting gift tax transcripts.

1. Lines 1a and 1b: Donor Information:

   • Enter the full legal name of the donor (the person who made the gift).
   • Provide the Social Security Number (SSN) of the donor. This is crucial for identifying the correct tax records.

2. Lines 2a and 2b: Leave Blank:

   • These lines are for business information and are not applicable when requesting a gift tax transcript in an individual capacity. Leave these lines empty.

3. Line 3: Donor’s Current Address:

   • If the donor is currently living, enter their current mailing address. This address must match the IRS’s official records for verification purposes.
   • If the donor is deceased, provide the name, title (e.g., Executor, Personal Representative), and address of the estate representative.

4. Line 4: Leave Blank:

   • This line is for a different type of request and is not needed for gift tax transcripts. Leave it blank.

5. Line 6: Tax Form Number:

   • In this section, clearly enter “Form 709.” This specifies that you are requesting a transcript for a United States Gift (and Generation-Skipping Transfer) Tax Return.

6. Lines 6a-c: Tax Return Type:

   • For gift tax transcripts, the ONLY option is 6b, “Gift Tax Return.”
   • DO NOT select options 6a or 6c, or any options in items 7 or 8. Selecting incorrect options will lead to processing errors.

7. Line 9: Tax Period Date:

   • Enter the tax period for the gift tax return you are requesting in MMDDYYYY format. This is typically December 31st of the year the gift was made for annual gift tax returns. For example, for the 2023 gift tax return, you would enter 12312023.
   • If you are unsure of the exact tax period, refer to the “Written Requests” section later in this article for an alternative approach.

8. Attestation Clause:

   • Carefully read the attestation clause on Form 4506-T.
   • You MUST check the box to agree to the attestation clause for your request to be processed. Failure to check this box will result in rejection.

9. Signature and Title Requirements:

   • The form must be signed by someone authorized to receive the taxpayer’s information.
   • If the donor (listed on Line 1) is also the requester, no further documentation is needed besides the signature.
   • If the requester is someone other than the donor, the “Title” portion of the signature section must be completed and substantiated with proper documentation. Refer to the “Documentation Requirements for Authorized Representatives” section below for detailed instructions.

Documentation Requirements for Authorized Representatives

When someone other than the taxpayer (donor) requests the transcript, they must provide documentation to prove their legal authority to access the donor’s tax information. The required documentation varies based on the requester’s relationship to the donor.

1. Personal Representative/Executor/Executrix:

   • If you are signing as a Personal Representative, Executor, or Executrix of a deceased donor’s estate, you must submit Letters Testamentary, Letters of General Administration, or another similar court-issued document that legally appoints you to this role.
   • In the “Title” section of Form 4506-T, enter either “Personal Representative,” “Executor,” or “Executrix.”

2. Surviving Spouse (No Probate):

   • If there is no probate process for the estate and you are the surviving spouse, you must provide:
     • A statement confirming that no probate will be initiated.
     • A copy of your marriage certificate or a similar document proving your marital relationship.
   • Enter “Spouse” in the “Title” section.

3. Trustee (No Probate, Estate in Trust):

   • If there is no probate and the estate is managed under a trust, you need to provide:
     • A statement confirming no probate will be initiated.
     • A Certificate of Trust or a complete copy of the Trust Instrument.
   • Enter “Trustee of the _______ Trust” in the “Title” section, filling in the name of the trust.

4. Trust Officer:

   • If a Trust Officer from a bank or trust company is signing, the institution must substantiate the Trust Officer’s authorization to receive taxpayer information. This includes identifying the specific Trust Officer’s authority.
   • Enter “Trust Officer” in the “Title” section.

5. Tax Professional (Power of Attorney):

   • If a tax professional is requesting the transcript on behalf of a client, they must provide a copy of the initial Form 2848, Power of Attorney and Declaration of Representative, that was originally submitted to the IRS for the same taxpayer and the same tax year.
   • A new Form 2848 is not sufficient; the Power of Attorney must already be on file and recorded in the IRS’s Centralized Authorization File (CAF) system.
   • Enter “Power of Attorney” in the “Title” section.

   Example of Form 4506-T, highlighting its official use for requesting tax return transcripts from the IRS.

General Tips for Form 4506-T

• Avoid Alterations: Do not alter Form 4506-T in any way. Altered forms, including those with white-out, pen and ink changes, or type-overs, will not be accepted.
• Mailing or Faxing: Refer to the instructions for Form 4506-T to find the correct mailing address or fax number based on the state where the taxpayer was domiciled. Requests are typically sent to the RAIVS Team in either Ogden, UT, or Cincinnati, OH.

Written Requests for Gift Tax Transcripts

In situations where you do not know the tax year(s) for which gift tax returns were filed, a written request is a viable alternative to Form 4506-T. This method is particularly useful when you need a comprehensive search of all filed gift tax returns for a taxpayer.

How to Submit a Written Request

1. Content of the Request: The written request must explicitly state that you are requesting a determination of “All Gift Tax Returns Filed” for the taxpayer.
2. Recipient Address: Use the same fax number or mailing address provided in the Form 4506-T instructions, based on the taxpayer’s domicile.
3. Substantiation: Just like with Form 4506-T, written requests from anyone other than the taxpayer must be substantiated with the necessary documentation as outlined in the “Documentation Requirements for Authorized Representatives” section above. Unsubstantiated requests will be rejected.

Important Considerations Regarding Form 2848, Power of Attorney

Form 2848, Power of Attorney and Declaration of Representative, is crucial for tax professionals representing clients before the IRS. Here are key points to ensure your Form 2848 is correctly filed and does not cause delays or rejections in your transcript requests:

• File Only One Official Form 2848: For each taxpayer, file only one official Form 2848, following the most current IRS instructions. Ensure consistent spelling and address for the taxpayer across all correspondence.
• Send Original to CAF Unit: Submit one complete original Form 2848 with all required substantiation to the CAF Unit at the address specified in Form 2848 instructions. This is the only way to officially record the Power of Attorney with the IRS.
• Use Copies for Subsequent Correspondence: For any future correspondence with the IRS concerning the same taxpayer, use a copy of the officially filed Form 2848. Label it as “Copy,” do not make alterations or include an original signature. The IRS will electronically verify the Power of Attorney against their CAF system records.
• Avoid Premature Submission: Do not send a Form 2848 with a transcript request if it has not yet been sent to the CAF Unit for processing. The CAF system needs time to update, and immediate submissions can lead to rejection.
• Address/Phone Updates: To update a tax professional’s address or phone number in the CAF system, do not file a new Form 2848. Instead, send written notification with the new information and the representative’s signature to the location where the original Form 2848 was filed.
• CAF System Updates: The CAF system is updated solely based on documents received directly at the CAF Unit.
• “Request and Receive IRS Transcripts” Authorization: While not mandatory, it is advisable to check “Other acts authorized” on Line 5a of Form 2848 and write in “Request and Receive IRS Transcripts.” This clearly authorizes the representative to obtain transcripts on behalf of the client.

Conclusion

Obtaining a federal gift tax return transcript from the IRS is a straightforward process when you understand the correct procedures. Whether you choose to use Form 4506-T or submit a written request, accuracy and proper documentation are key. By following the guidelines outlined in this article, you can efficiently access the necessary gift tax information, ensuring compliance and facilitating effective management of federal tax on gifts matters. Always refer to the official IRS website and the latest instructions for Form 4506-T and Form 2848 for the most up-to-date information and guidance.