19 Apr 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.Disclaimer: This blog and website are public sources of general information concerning our firm and its lawyers, as well as the information presented. They are intended, but not promised or guaranteed, to be correct, complete, and up-to-date as of the date posted. This blog and website are not intended to be, and are not, sources of legal opinion or advice. The materials, information, and communications on this blog and website do not apply to any particular person, entity, or situation, and do not apply to you or to your specific situation. You will need to consult with an attorney and/or other appropriate professional about your specific situation. Thank you.