Image credit: www.sxc.hu - free image
Tuesday, March 13, 2012
IRS Searching for Unreported Gifts
Here is another example of the IRS gathering information to facilitate a review of land transfers between family members for little or no money. If someone in your life has slapped the name of other family members on the deed to the family home, cabin, land, etc., and did not report it, they may have made a gift without paying the gift tax. It may take them some time, but more likely than not, the transfer and tax avoidance will come to the attention of the IRS. As I always say in seminars, it is less expensive to hire an attorney for advice beforehand than to hire one to clean up a mess. And please keep in mind, a blog post is not legal advice. Please seek counsel from an attorney in your state.