Gift Tax

[jude11142]

What is the name of your state? Connecticut

My father-inlaw quitclaimed his house to me. We did have some problems with the legality of it, so we did it over with the lawyer. Nothing was said about "gift tax".....
He recieved a letter from State of CT re: 2003 Gift Tax Compliance Program stating that the donor needs to file form CT-709 for 2003 when the house was quitclaimed...........and because the transfer appears to be foror less than adequate consideration it may be subject to the CT gift tax...
Form Ct-709 was sent with this letter...for the tax computation where do I get the numbers...under section 2 question 1 says to enter amt from schedule A line 13...........from what I know, he hasn't filed taxes in over 15 yrs....what does he need to do?
Am I able to take care of this for him?? How much tax is pd for a gift???? Am I to file anything as the donee???

Thank you,
JUDE

 

[dallas702]

If your FIL hasn't filed taxes in 15 years, and actually would have owed taxes during those years, the IRS will probably take that house and sell it to pay the taxes. It would look to them like he is trying to conceal assets. He could also face heavy fines and possibly jail. If you take part in this knowing there is a possibility of fraud or concealment you might also be implicated. You'd better look this gift horse square in the mouth and think again.

Of course, if he was owed a refund all those years he won't get a dime for any but the last 3 (if he dares file now).

 

[abezon]

Go see a tax pro with all the info & file the appropriate returns.