IRS Laws Regarding Yearly Cash Gift to Child
Help!
We are retired and last year gifted one of our sons money for a down payment on his home.
We read that this would not be taxable and filed what we thought was the appropriate form.
The IRS contacted us with a bill of over $30,000!
The penalty and interest grows by the day.
Is there anything we can do?
Thank you.
TT and ET.
Terry Says
That’s not right! There is no gift tax until you die –and amounts in your estate are over $15 million, each! (You didn’t give that much, did you??)
And there is no need to report– especially if your gift was less than $15,000 each. That’s the allowable annual amount you can each give without any reporting.
What form did you file? Who gave you that advice??
Now, you need to appeal. What a mess that will be.
Contact the IRS office of the Taxpayer Advocate via this link.
You might need a tax attorney. Please write back and let me know what happens.
