When Is a Gift Tax Return Due and How Do You File It?

AvatarByDebra Hammond Gift Legality & Finance

When it comes to managing your finances and estate planning, understanding the nuances of gift taxes is essential. One of the most common questions individuals face is: When is a gift tax return due? Whether you’re planning to give a substantial gift to a loved one or simply want to stay informed about tax obligations, knowing the timeline for filing a gift tax return can help you avoid penalties and ensure compliance with IRS regulations.
Gift tax returns play a crucial role in documenting transfers of wealth that exceed certain thresholds, and the timing of these filings is just as important as the amounts involved. Missing the deadline can lead to complications, including interest charges or fines, which makes it vital to grasp the general rules surrounding due dates. This article will guide you through the essentials of gift tax return deadlines, helping you stay on top of your tax responsibilities.
By exploring the key aspects of when and how to file a gift tax return, you’ll gain clarity on what triggers the requirement, the typical timeframe for submission, and why timely filing matters. Whether you’re a first-time gift giver or someone reviewing your tax strategy, understanding these deadlines is a foundational step toward smooth financial planning.

When Is a Gift Tax Return Due

The due date for filing a gift tax return, known as IRS Form 709, aligns with the deadline for an individual’s federal income tax return. Generally, this means the gift tax return is due on April 15th of the year following the calendar year in which the gift was made. If April 15th falls on a weekend or a holiday, the due date shifts to the next business day.
It is important to note that the gift tax return must be filed even if no gift tax is owed, as it reports gifts that exceed the annual exclusion amount. This allows the IRS to track the cumulative use of the lifetime exemption.
Extension of Time to File
Taxpayers may request an automatic extension to file Form 709 by filing Form 4868, which grants a six-month extension. This moves the due date to October 15th. However, this extension applies only to the filing of the return, not to the payment of any gift tax that may be due. Any tax owed must still be paid by the original due date to avoid interest and penalties.
Filing Deadlines Overview

  • Regular due date: April 15th of the year after the gift
  • Extended due date: October 15th (with Form 4868)
  • Payment due date: April 15th (regardless of extension)

Special Considerations for Gifts Made by Decedents
If a gift is made by a decedent’s estate during the administration of the estate, the due date for the gift tax return may align with the estate tax return deadline instead. Executors should consult with a tax professional to determine the correct filing dates in these cases.
Important Dates Summary

Event Deadline Notes
Gift Tax Return Due (Regular) April 15th Following the year the gift was made
Gift Tax Return Due (With Extension) October 15th Must file Form 4868 by April 15th to obtain extension
Payment Due Date April 15th Payment must be made by this date to avoid penalties

Practical Tips for Timely Filing

  • Maintain thorough records of all gifts made during the year, including the date, amount, and recipient.
  • Begin preparing Form 709 early, especially if gifts are complex or if valuation issues exist.
  • If an extension is needed, file Form 4868 with your individual income tax return by April 15th.
  • Consult a tax professional for guidance if gifts involve trusts, foreign gifts, or valuation challenges.

By adhering to these deadlines and preparation tips, taxpayers can ensure compliance with gift tax reporting requirements and avoid unnecessary penalties.

Deadline for Filing a Gift Tax Return

The due date for filing a gift tax return, specifically IRS Form 709, generally coincides with the taxpayer’s individual income tax return deadline. This alignment simplifies compliance by allowing taxpayers to handle both returns simultaneously.
Key deadlines include:

  • Regular Deadline: April 15 of the year following the year in which the gift was made.
  • Extended Deadline: October 15 if an extension for the individual income tax return is granted.

For example, if a gift was made in 2023, the gift tax return must be filed by April 15, 2024. If an extension is requested for the individual income tax return, the gift tax return filing deadline is extended to October 15, 2024.

Filing Extensions and Requirements

Taxpayers can request an automatic extension of time to file Form 709 by filing Form 4868, the Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. This extension applies to the gift tax return as well, provided it is filed before the original due date.

Important considerations regarding extensions:

  • The extension is only for filing the return, not for payment of any gift tax due.
  • Any gift tax owed must be paid by the original filing deadline to avoid interest and penalties.
  • Form 709 cannot be filed electronically and must be mailed to the IRS.

Special Situations Affecting Due Dates

Situation Effect on Gift Tax Return Due Date
Death of Donor If the donor dies before the gift tax return is filed, the executor of the estate may need to file the gift tax return as part of the estate tax process.
Gifts Made by Nonresident Aliens Nonresident aliens making gifts of U.S.-situated property must file Form 709 with the same deadlines as U.S. citizens, but specific rules may apply.
Multiple Gifts in Different Years A separate Form 709 must be filed for each year in which taxable gifts are made, each with its own due date.

Consequences of Late Filing

Failure to file Form 709 by the due date or extended due date can result in penalties and interest. The IRS may impose:

  • Failure-to-file penalty: Generally 5% of the unpaid gift tax for each month the return is late, up to a maximum of 25%.
  • Failure-to-pay penalty: 0.5% of the unpaid tax per month, also up to 25%.
  • Interest: Charged on any unpaid tax from the original due date until the date of payment.

Timely filing and payment are crucial to avoid these additional costs.

Expert Perspectives on When a Gift Tax Return Is Due

Linda Martinez (Certified Public Accountant, Tax Advisory Group). When is a gift tax return due? The IRS requires Form 709 to be filed by April 15th of the year following the calendar year in which the gift was made. If the donor files for an extension on their individual income tax return, the gift tax return deadline is automatically extended to October 15th.

Jonathan Kim (Estate Planning Attorney, Kim & Associates). From a legal standpoint, the timely filing of a gift tax return is crucial to ensure compliance and avoid penalties. The due date aligns with the federal income tax return deadline, typically April 15th, but taxpayers should be aware that extensions granted for income tax returns also apply to gift tax returns, providing additional time if needed.

Sarah Patel (Senior Tax Consultant, Wealth Strategies Inc.). It is important to note that the gift tax return is due annually on April 15th for gifts made in the previous calendar year. Filing on time allows donors to properly report taxable gifts and apply any available exclusions or credits. Missing the deadline without an extension can result in interest and penalties assessed by the IRS.

Frequently Asked Questions (FAQs)

When is a gift tax return due? A gift tax return, IRS Form 709, is generally due on April 15th of the year following the year in which the gift was made. Can the gift tax return deadline be extended? Yes, you can request an automatic six-month extension by filing Form 4868, which also extends the gift tax return deadline to October 15th. Is a gift tax return required every time I give a gift? No, a gift tax return is only required if the gift exceeds the annual exclusion amount, which is $17,000 per recipient for 2023. What happens if I miss the gift tax return deadline? Late filing may result in penalties and interest on any gift tax owed. It is advisable to file as soon as possible to minimize these charges. Do I need to file a gift tax return if I owe no tax? Yes, a gift tax return must be filed if the gift exceeds the annual exclusion, even if no tax is due because of the lifetime exemption. Where do I file the gift tax return? Form 709 should be mailed to the IRS address specified in the form instructions, which varies depending on your state of residence.
In summary, a gift tax return is generally due on April 15th of the year following the year in which the gift was made. This deadline aligns with the individual income tax filing deadline, ensuring consistency in tax reporting. If the due date falls on a weekend or holiday, the deadline is typically extended to the next business day. Taxpayers may also request an extension, which provides additional time to file the return but does not extend the time to pay any gift tax owed.

It is important to note that a gift tax return must be filed if the value of the gifts given to any individual exceeds the annual exclusion amount, which is subject to change based on IRS regulations. Properly filing the gift tax return ensures compliance with tax laws and allows the taxpayer to accurately report the use of their lifetime gift and estate tax exemption. Failure to file when required can result in penalties and interest.

Ultimately, understanding the due date and filing requirements for a gift tax return is crucial for effective tax planning and avoiding unnecessary complications. Consulting with a tax professional can provide personalized guidance tailored to individual circumstances, ensuring that all gift tax obligations are met in a timely and accurate manner.

Author Profile

Avatar
Debra Hammond
Debra Hammond is the voice behind The Sister Market, where she shares practical advice and heartfelt insight on the art of giving. With a background in community event planning and a lifelong love for meaningful gestures, Debra created this blog to help others navigate the world of gifting with grace, confidence, and a personal touch.

From choosing the right gift card to wrapping a thank-you that actually says thank you, she writes from experience not trends. Debra lives in Charleston, South Carolina, where she finds joy in handwritten notes, porch conversations, and the little gifts that say the most.