Form 709 Gift Tax Filing

[MichaelDi09]

I prepared a form 709 for a client to file by 4/15/21, due to his gift of eguity in a property he was part owner of , and sold to his daughter , plus paid her closing costs .

Total gift amounted to approx $72K.

I forwarded the paperwork , with due date and my invoice earlier in week.

Rec'd a call today, from said client asking, "why do I need to file the 709, they will never know of the gift?"

I advised him of his obligation and to file the return.

Anyone experience someone defiant and refusing to file these returns?

Just mind boggling . They pay me for my knowledge and expertise.

[TAXNJ]

Did you have a signed Engagement Letter? Did you ask for a retainer?

Why give the tax return without payment prior?

To answer your question, years ago, when we first started out and learned the hard way as you are experiencing. No more since then.

[ATSMAN]

Invoice the SOB! If he does not want to file that is his choice, BUT he has to pay you for your work.

See if you can have a little "man to man" chat if you know what I mean!

[MichaelDi09]

Did you have a signed Engagement Letter? Did you ask for a retainer?

Why give the tax return without payment prior?

To answer your question, years ago, when we first started out and learned the hard way as you are experiencing. No more since then.

I've known this client for over 30 years. You tend to trust them enough not to ask for a retainer. That courtesy will no longer be extended.

[TAXNJ]

I've known this client for over 30 years. You tend to trust them enough not to ask for a retainer. That courtesy will no longer be extended.

Well, you can tell the client you have your name and signature as a Paid Preparer on the IRS documents and either they pay you or send the original return back to you.

We “trust” clients who give a retainer and signed Engagement Letter whether 1st year and/or longer clients before any work to avoid any issues you are experiencing.

Nothing against the clients it’s just business policy. Also, the business policy is to avoid preparation of tax returns especially for friends.

[EvenKeelTax]

I prepared a form 709 for a client to file by 4/15/21, due to his gift of eguity in a property he was part owner of , and sold to his daughter , plus paid her closing costs .

Total gift amounted to approx $72K.

I forwarded the paperwork , with due date and my invoice earlier in week.

Rec'd a call today, from said client asking, "why do I need to file the 709, they will never know of the gift?"

I advised him of his obligation and to file the return.

Anyone experience someone defiant and refusing to file these returns?

Just mind boggling . They pay me for my knowledge and expertise.

What does the client tell you when you explain you can give over 11.5 million dollars in a lifetime without income tax liability to the IRS? I thought in the "normal" world the 709 was just a formality. Then again I don't have multimillionaire clients and I don't know all of the various state gift tax laws...

[MichaelDi09]

What does the client tell you when you explain you can give over 11.5 million dollars in a lifetime without income tax liability to the IRS? I thought in the "normal" world the 709 was just a formality. Then again I don't have multimillionaire clients and I don't know all of the various state gift tax laws...

I really think, his problem was having to pay a preparation fee , for the Form 709, after his personal taxes were recently filed.
He can file it or not file it. I received payment for my services today. If they don't take your advice, nothing further to discuss.