Penalty for Late Filing Gift Tax

[erchess]

Taxpayer gave gifts to son. I was going to split the gifts but only the taxpayer and not the spouse filed for and was granted an extension. So is it better to pay whatever penalty the spouse will owe for late gift tax or to not split the gifts? What is the penalty for late filed gift tax and under what circumstances can I get the penalty abated?

In order to know for sure what is the best course of action for the long term do I have to know whether the couple will eventually divorce or emain married til one dies?

[ChEAr$]

Taxpayer gave gifts to son. I was going to split the gifts but only the taxpayer and not the spouse filed for and was granted an extension. So is it better to pay whatever penalty the spouse will owe for late gift tax or to not split the gifts? What is the penalty for late filed gift tax and under what circumstances can I get the penalty abated?

In order to know for sure what is the best course of action for the long term do I have to know whether the couple will eventually divorce or emain married til one dies?

I wouldn't worry about whether or not spouse had also filed an extension. Just go ahead and file the gift tax return with required information. chances are IRS will never notice. But if they do, you can then plead for abatement.