SEPT. 1, 2000

Tax Tid-Bits
Period of Limitations Begins to Run When Gift Properly Disclosed

The IRS has provided guidance for submitting information to adequately disclose a gift if the information was not initially submitted with a gift tax return filed for the calendar year in which the gift was made.

According to the guidance, the three-year period of limitation on gift tax assessment begins to run when adequate disclosure of the gift is provided. If the gift’s value is required on the return or an attachment, the period of limitation will not begin to run where the return or attachment does not provide sufficient information for the IRS to determine the nature of the gift and the basis for reporting its value.

Amended returns must be filed with the same Internal Revenue Service Center where the donor filed the original return for the calendar year. The top of the first page of the amended return must have the words "Amended Form 709 for gift(s) made in [insert the calendar year that the gift was made] – In accordance with Rev. Proc. 2000-34, 2000-34 I.R.B. 186."

The revenue procedure is effective with respect to amended returns filed after August 21, 2000 to comply with § 301.6501(c)-1(f)(2).