Gift Tax Form 709 Filing Requirements

The U.S. federal government imposes a tax on property transfers where an individual gives something of value to another person while receiving nothing, or less than full value, in return. The donor, who is the person making the gift, reports these transfers to the IRS on Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return.

Filing this form does not automatically mean a tax payment is due. The form reports taxable gifts and tracks the use of the donor’s lifetime gift and estate tax exemption. This exemption is a significant amount a person can give away tax-free over their lifetime, so many individuals file Form 709 to report large gifts but will owe no actual tax.

Who is Required to File a Gift Tax Return

The need to file Form 709 is determined by the annual gift tax exclusion. For the 2025 tax year, an individual can give up to $19,000 to any number of people without filing. If you give more than this amount to any single person in a calendar year, you must file a gift tax return. This includes not only cash but also property, such as a car or real estate, for less than its fair market value, or forgiving a debt. The cumulative value of gifts to a single person within a year is what matters, not just one transaction.

Certain situations automatically trigger a filing requirement, regardless of the gift’s value. One instance is a gift of a “future interest,” where the recipient does not have the immediate right to use or possess the property, such as contributions to certain trusts. Another trigger is when married couples elect to “split” a gift.

A gift tax return is not needed for certain transfers. These exceptions include:

• Payments made directly to a qualified educational institution for someone else’s tuition.
• Payments made directly to a medical facility or provider for another person’s medical care.
• Gifts made to your U.S. citizen spouse.
• Gifts to political organizations for their use.
• Gifts to qualifying charitable organizations.

Information Needed to Complete Form 709

The form requires specific details about the donor, the recipients (donees), and the gifts themselves. The donor must provide their full name, mailing address, and Social Security Number. If the donor’s spouse is consenting to split gifts, their name and Social Security Number are also required.

For each gift, detailed information about the recipient is required on Schedule A of the form. This includes the donee’s full name, address, and their relationship to the donor. If the gift is made into a trust, the trust’s name, address, and Employer Identification Number are needed instead.

A thorough description of each gift is also mandatory. For stocks, the CUSIP number should be included, and for real estate, a legal description from the deed is necessary. You must also provide the date the gift was made and its fair market value (FMV) on that date. For assets without a readily available market price, such as an interest in a closely held business, a formal appraisal may be required to substantiate the reported value.

Finally, the donor must report their adjusted basis in the gifted property. The adjusted basis is what the donor originally paid for the asset, plus any improvements, minus any depreciation. This information is important because it generally becomes the recipient’s basis in the property.

The Filing and Submission Process

The due date for filing Form 709 is April 15th of the year following the calendar year in which the gifts were made. This deadline aligns with the due date for individual income tax returns, Form 1040.

If you are unable to file by the April 15th deadline, an extension can be obtained. Filing for an automatic six-month extension for your federal income tax return by submitting Form 4868 will also extend the deadline to file Form 709 to October 15th. This is an extension to file, not an extension to pay. If any gift tax is owed, it must be estimated and paid by the original April 15th deadline to avoid penalties and interest.

The completed Form 709 must be mailed to the IRS address specified in the form’s instructions. If you determine that gift tax is due, payment can be made by mailing a check or money order with the return. Alternatively, payments can be made electronically using IRS Direct Pay or through the Electronic Federal Tax Payment System (EFTPS).

Special Considerations for Gift Splitting

Married couples have an option known as gift splitting, which allows a gift made by one spouse to be treated as if it were made one-half by each spouse. The advantage of this strategy is that it doubles the annual exclusion for a single recipient. For example, using the 2025 exclusion of $19,000, a married couple can jointly give up to $38,000 to one individual without using their lifetime exemptions.

To be eligible for gift splitting, several conditions must be met:

• The couple must be legally married at the time of the gift.
• Both spouses must be U.S. citizens or residents during the calendar year.
• The spouse making the gift cannot remarry during the rest of the year if the other spouse dies.
• Both spouses must consent to the gift splitting arrangement for all gifts made during the year by either spouse while they were married.

The consent to split gifts is formally made on Form 709. The consenting spouse must sign the designated line in the “Consent of Spouse” section of the other spouse’s return, which signifies their agreement for the entire calendar year. An important consequence of electing to split gifts is that it may require both spouses to file their own gift tax return, even if their individual half of the gift does not exceed the annual exclusion amount.