Gift Tax Many Questions

[erchess]

I have my first gift tax situation to do. I agreed to take it because I am an EA and I feel like I can do the necessary research and prepare the forms correctly.

The client says he filed an extension. Is that possible and if so what form should he have used and above all what are the consequences if he only thinks he has a valid extension?

I have read the info in the tax book and IRS Pub whatever. I will read the Instructions to F 709. Is there anything else I should read before I begin? All the gifts were to the son of my client and his wife. They gave several gifts totaling $26K and a lump sum of 100K and I have the dates of each gift. From what I have read so far it seems that their cash contributions and noncash contributions to qualified charities do not need to be reported on the 709 because they gifted their entire interests in what was given away. Am I wrong about that?

Can F 709 be efiled?

What's a reasonable fee in this situation? I don't want to stiff a guy who says he is leaving his former tax professional and looking to become my client but at the same time I don't want to undercharge and devalue my services.

All responses appreciated - many many thanks.

[dyne]

I learned that the less I charge, the less I am respected. So my new rule will be to RAISE
my fees. I have never prepared a gift tax return and do not intend to do so. Since it is
new to you, and since the taxpayer has money to give away, I would charge him a healthy
fee.

[Brian EA]

F 709 cannot be efiled. I did 1 this past season and I charged the guy $100. It is a stand alone return.
brian

[BOB W]

Gift tax returns come in all sizes just like a 1040 comes in all sizes. There are various questions that may require simple answers or complex answers, some with valuations derived from various sources. So prices come in all over the place. It is hard to bill on time and complexity but it should not be cheap.

I have done, what I thought were complex, only to later find it was a drop in the complex bucket. Before I do another Gift tax return I am going to do some substantial reading and/or CPE. Over the years there have been changes that I am not up to speed on.

But a simple cash transaction from one person to one or more persons is pretty cut and dry.