IRS Form 709: What Are the Filing Requirements?

IRS Form 709, the United States Gift (and Generation-Skipping Transfer) Tax Return, is a document used to report certain gifts made to others. Its function is to track transfers of wealth that may be subject to federal taxation. The responsibility for reporting a gift and paying any tax falls on the giver, not the recipient. Submitting Form 709 does not automatically mean tax is due, as many filings simply reduce the amount of the lifetime exemption available for future gifts or an individual’s estate.

Determining if You Need to File Form 709

A factor in determining the need to file Form 709 is the annual gift tax exclusion, which is $19,000 per recipient for 2025. A person can give up to this amount to any number of individuals within a calendar year without a filing requirement. If you give gifts at or below this threshold to each person, a Form 709 is not needed.

Certain situations, however, will trigger a filing requirement regardless of the gift’s value. A filing is necessary if you give a gift of a “future interest,” which is a gift the recipient cannot immediately access, use, or enjoy, such as contributions to certain types of trusts. The annual exclusion does not apply to these gifts.

A filing obligation also arises when spouses engage in “gift splitting,” which allows a married couple to treat a gift as if made one-half by each spouse. This requires filing Form 709 to make the formal election, even if the split gift amount per spouse is below the annual exclusion. Gifts to a non-U.S. citizen spouse that exceed the annual limit of $195,000 for 2025 also necessitate filing.

Conversely, several scenarios do not require a Form 709. Gifts made to a U.S. citizen spouse are unlimited and do not need to be reported. Direct payments made for another person’s tuition to an educational institution or for medical expenses to a care provider are also exempt. These payments must be made directly to the school or medical facility to qualify. Gifts to political organizations are also not subject to the gift tax.

Information and Valuations Needed for Form 709

Completing Form 709 requires gathering specific information about the donor and the recipients. You will need to provide your full name, address, and Social Security number. For each person who received a reportable gift, you must list their name, address, their relationship to you, and a clear description of the gift.

A requirement is the valuation of each gift at its Fair Market Value (FMV) on the date the gift was transferred. FMV is the price at which property would change hands between a willing buyer and a seller, with both having reasonable knowledge of relevant facts.

Valuing publicly traded stocks requires calculating the average of the high and low selling prices on the date of the gift. For assets without a readily available market price, such as interests in a privately held business or real estate, a formal appraisal by a qualified professional is often necessary. Incorrectly valuing a gift can lead to challenges from the IRS and potential penalties.

The section for reporting gifts is Schedule A of Form 709. Here, you will list each recipient, describe the gift they received, report the date of the gift, and state its value.

The Filing Process and Deadlines

The deadline for filing Form 709 is aligned with the individual income tax deadline. For gifts made during a calendar year, the return is due by April 15 of the following year. For any reportable gifts made in 2024, the Form 709 must be filed by April 15, 2025.

If you are unable to meet the April filing deadline, an extension is available. Filing for an automatic six-month extension for your income tax return using Form 4868 also extends the time to file Form 709 to October 15. This is an extension of time to file, not an extension of time to pay any gift tax that may be due.

Form 709 must be filed by mail. The specific mailing address depends on whether a payment is being included with the return. You must consult the official instructions for Form 709 to ensure the return is sent to the correct IRS service center.

Key Gift Tax Concepts

The gift tax system is integrated with the federal estate tax, and both are governed by a unified lifetime exemption. For 2025, this exemption is $13.99 million per individual. When you file Form 709 to report gifts that exceed the annual exclusion, the excess amount is subtracted from your lifetime exemption. Out-of-pocket gift tax is only due once your cumulative taxable gifts have completely exhausted this lifetime amount.

Gift splitting is a provision that allows a married couple to treat gifts made by one spouse to a third party as if made one-half by each spouse. This election is made on Form 709 and requires the consent of both spouses by signing the return. The benefit is that it allows the couple to combine their annual exclusions for a single donee. For example, a couple could give up to $38,000 to one person in 2025 without using any lifetime exemption.

Form 709 is also used to report transfers subject to the Generation-Skipping Transfer (GST) tax. This separate tax applies to gifts made to “skip persons,” who are individuals two or more generations younger than the donor, such as a grandchild. The GST tax has its own lifetime exemption, equal to the gift and estate tax exemption. When a gift is made to a skip person, the donor reports it on Form 709 and allocates their GST exemption to shield it from this tax.