Recommendations to Prevent Gift Tax Avoidance

Mitchell Gans (Steven A. Horowitz Distinguished Professor of Tax Law, Hofstra University – School of Law) and Jay A. Soled (Professor, Accounting, Business Ethics & Information Systems and Director, Master of Accounting in Taxation Program, Rutgers University) have recently posted on SSRN their article entitled Reforming the Gift Tax and Making it Enforceable.

Here is the abstract of their article:

Historically, the gift tax has performed the admirable role of safeguarding the integrities of both the estate and income taxes. Due to taxpayers’ abilities to narrow the gift tax base and ignore their filing obligations, however, fulfillment of its historical role is now in jeopardy. This analysis details how taxpayers circumvent their gift tax obligations and then sets forth reforms that Congress can readily institute to curb taxpayers’ transgressions. Institution of these recommendations would enable the gift tax to continue to fulfill its historic functions.