If a Gift Tax return has no payment due what is the penalty for filing it late? In other words how much of an issue should this be for my client. Obviously the return is due on Monday and it's ready for me to print and efile but my client is considering telling me he has no time to meet with me until a week after the deadline. I will of course have no problems caused by his lack of availability to meet with me and sign so that I can either file or give him a copy to mail but I want to know so I can advise him how much of a problem he is going to have.
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The penalty for late filing of a gift tax return is the same as for an income tax return ... 5% of the tax due, per month or fraction of a month, up to 25%. (Code ยง6651 (a)(1) and (b)(1)) So if there is no tax shown on the return, the penalty is zero.Roland Slugg
"I do what I can." -
Even if no tax due
there could be a $135 penalty if the return is more than 60 days late according to TTB pg 15-2, upper left.Comment
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So we agree there is no penalty if it is 60 days or less late. Do we agree that the due date is 10/15/12 for 2011 for a calendar year taxpayer?Comment
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