IRS Focusing Gift / Estate Tax Enforcement on California Property Tax Records

Last month, in court in the Eastern District of California, the IRS asked for permission to serve a “John Doe” summons on the California Board of Equalization to require California authorities to release California property tax records relating to transfers of property for little or no consideration.  If enforced, the summons would require the state to turn over information on real property transfers in California between 2005 and 2010. The IRS claims that taxpayers transferring real property to related parties often fail to file a U.S. Gift Tax Return (Form 709), and the IRS plans to use information obtained from the state to identify such failures. With new enforcement efforts underway, taxpayers should prioritize gift tax compliance and exercise caution in planning transfers of wealth.

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Roger Royse
rroyse@rroyselaw.com

Roger Royse, the founder of the Royse Law Firm, works with companies ranging from newly formed tech startups to publicly traded multinationals in a variety of industries. Roger regularly advises on complex tax structuring, high stakes business negotiations and large international financial transactions. Practicing business and tax law since 1984, Roger’s background includes work with prominent San Francisco Bay area law firms, as well as Milbank, Tweed, Hadley and McCloy in New York City.
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