Understanding Taxes on Gifts: How to Obtain Your IRS Gift Tax Return Transcript

Navigating the complexities of gift taxes often requires access to past tax return information. Whether you’re an attorney, financial advisor, or individual managing estate planning or tax compliance, obtaining a transcript of a gift tax return from the IRS is a crucial step. This guide will walk you through the process of requesting a gift tax return transcript from the IRS, ensuring you have the necessary documentation and information to get the records you need efficiently.

Requesting a Gift Tax Transcript Using Form 4506-T

The IRS provides a straightforward method for requesting gift tax return transcripts using Form 4506-T, Request for Transcript of Tax Return. This form, when completed accurately and accompanied by proper substantiation, allows you to receive a transcript of your filed gift tax return. Here’s a step-by-step guide to filling out Form 4506-T specifically for gift tax inquiries:

Step-by-Step Guide to Completing Form 4506-T for Gift Tax Returns:

• Lines 1a and 1b: Donor Information: It is essential to enter the Donor’s information here, including their Social Security Number (SSN). This is the individual who filed the gift tax return.
• Lines 2a and 2b: Recipient Information: Leave these lines blank. They are not applicable for gift tax transcript requests.
• Line 3: Donor’s Address: Provide 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 match the official IRS record for the request to be processed smoothly.
• Line 4: Customer File Number: Leave this line blank as it is not required for gift tax transcript requests.
• Line 6: Type of Tax Return: Enter “Form 709.” This is the specific form number for United States Gift (and Generation-Skipping Transfer) Tax Return.
• Line 6 a-c: Tax Return Transcript: For gift tax returns, the ONLY option available is 6b, “Return Transcript.” Do not select any other options in items 6-8, as they are not applicable to gift tax return transcripts.
• Line 9: Tax Period: Enter the tax period for the gift tax return you need a transcript for in MMDDYYYY format. If you are unsure of the exact tax period, refer to the “Written Requests” section detailed later in this guide.
• Attestation Clause: Carefully read the attestation clause on Form 4506-T. You must check the box to agree to this clause for your request to be processed.

Signature and Title Requirements:

The person making the request must be authorized to receive the transcript information.

• If the Taxpayer (Donor) is the Requester: No additional documentation is needed. Simply sign and submit the form.
• If the Requester is NOT the Taxpayer (Donor): You must complete the “Title” portion of the signature section and provide proper substantiating documentation.

Required Documentation for Authorized Representatives:

Depending on your relationship to the donor, different documentation is required to substantiate your authority to request the transcript.

1. Personal Representative/Executor/Executrix: If you are signing as a Personal Representative, Executor, or Executrix, you must include Letters Testamentary, Letters of General Administration, or a similar court-issued document with Form 4506-T. In the Title section, enter “Personal Representative,” “Executor,” or “Executrix,” as applicable.

2. Surviving Spouse (No Probate): If there is no probate and you are the surviving spouse, include a statement confirming that no probate will be commenced, along with a copy of your marriage certificate or similar documentation. Enter “Spouse” in the Title section.

3. Trustee (No Probate): If the estate is managed by a Trustee without probate, provide a statement that no probate will be commenced and either a Certificate of Trust or a complete copy of the Trust Instrument. Enter “Trustee of the _______ Trust” in the Title section, filling in the trust name.

4. Trust Officer: If a Trust Officer is signing, the Bank or Trust Company must verify the officer’s authorization to receive taxpayer information, including identification of the specific Trust Officer. Enter “Trust Officer” in the Title section.

5. Tax Professional (Power of Attorney): If a tax professional is requesting the transcript, you 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 tax year. A new Form 2848 is insufficient; the Power of Attorney must already be on record with the IRS’s Centralized Authorization File (CAF) system. Enter “Power of Attorney” in the Title section.

Important Note on Form Alterations: The IRS will reject altered forms. Avoid using white-out, pen and ink changes, or type-overs on Form 4506-T.

Mailing or Faxing Your Request:

Form 4506-T instructions include a chart that specifies where to mail or fax your request based on the state where the taxpayer was domiciled. Ensure you send your request to the correct RAIVS Team location in either Ogden, UT, or Cincinnati, OH, as listed in the instructions.

Written Requests for Gift Tax Transcripts

In situations where you are unsure of the specific tax year(s) for which gift tax returns were filed, you can submit a written request to the IRS for a gift tax transcript. This method should be reserved for cases where the tax period is unknown.

Your written request must explicitly state that you are requesting a determination of “All Gift Tax Returns Filed” for the taxpayer. Use the same fax numbers or mailing addresses provided in the Form 4506-T instructions. Just as with Form 4506-T requests, written requests must also include proper substantiating documentation based on your authorization to access the donor’s tax information. Unsubstantiated written requests will also be rejected.

Form 2848, Power of Attorney: Key Considerations

To minimize the chance of rejection when a tax professional requests transcripts using Form 2848, Power of Attorney, keep these points in mind:

• File Form 2848 Correctly: Always file one complete and accurate Form 2848 with original substantiation with the CAF Unit as per the Form 2848 instructions. This establishes the Power of Attorney record with the IRS.
• Use Copies for Subsequent Requests: For any future correspondence or transcript requests for the same taxpayer, always provide a copy of the officially filed Form 2848. Do not alter it or include an original signature; simply label it “Copy.” The IRS will verify the Power of Attorney electronically against their records.
• Avoid Submitting New Form 2848 with Transcript Requests: Do not send a new Form 2848 with your Form 4506-T or written transcript request unless it is the initial filing of the Power of Attorney.
• 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 of the updated information, including the representative’s signature, to the CAF Unit where the original Form 2848 was filed.
• CAF System Updates: The CAF system is updated only from documents received directly at the CAF Unit.
• “Request and Receive IRS Transcripts” Authorization: While not mandatory, it can be beneficial to check “Other acts authorized” on Line 5a of Form 2848 and write in “Request and Receive IRS Transcripts” to explicitly authorize this action.

By carefully following these guidelines, you can effectively request and receive gift tax return transcripts from the IRS, ensuring compliance and accurate management of gift tax related matters. Remember, accuracy and thorough documentation are key to a successful request.