The filing deadline for gift tax returns is quickly approaching. One benefit of filing a gift tax return is starting the Statute of Limitations, which gives the IRS three years to challenge the gift valuation. However, to successfully begin the limitations period, adequate notice must be given, which means including an appraisal or an equivalent showing of how the gift was valued.
See John P. Dedon, Gift Tax Returns and Adequate Disclosure, The National law Review, March 26, 2015.
Special thanks to Jim Hillhouse for bringing this article to my attention.
