When responding to IRS Letter 4883C, the Internal Revenue Service asks for specific personal and tax-related information to verify your identity. This information is used only to confirm that the tax return was filed by the correct taxpayer and to prevent identity theft.
When responding to IRS Letter 4883C, identity verification may be completed either online or by phone, depending on the options provided in the letter. The IRS determines which methods are available based on the information needed to confirm the taxpayer’s identity.
An amended Form 709 is used to correct errors, omissions, or changes related to a previously filed gift tax return. The amended return replaces or supplements the original filing and updates the donor’s lifetime gift and generation-skipping transfer tax records.
After Form 709 is filed, the Internal Revenue Service uses the information reported on the return to update the donor’s lifetime gift tax and generation-skipping transfer tax records. In most cases, no immediate action occurs unless tax is due, the return is incomplete, or the reported information requires clarification.
Gifts made to trusts are commonly required to be reported on Form 709 because they often involve future interests or require classification under gift tax and generation-skipping transfer tax rules. Form 709 is used to disclose the transfer, determine whether any exclusions apply, and document how the gift is treated for tax purposes.
Form 709 must be used to report gifts of digital assets when those transfers meet the criteria for gift tax or generation-skipping transfer tax reporting. Digital assets are treated as property for federal gift tax purposes, and their transfer is reported using the same structure and schedules as other noncash gifts.
Gift splitting allows spouses to treat gifts made to third parties during a calendar year as if one-half were made by each spouse. When this election is used, Form 709 must be filed to document the election and report each spouse’s share of the gifts, even if no gift tax is due.
Schedule D is used to report generation-skipping transfers and to compute generation-skipping transfer tax and exemption allocations on Form 709. This schedule applies when gifts are made to skip persons or to trusts that fall under generation-skipping transfer tax rules.
Schedule C is used to report and apply a deceased spousal unused exclusion amount on Form 709. This schedule documents exclusion amounts received from a predeceased spouse and shows how those amounts are applied to current or prior lifetime gifts under federal portability rules.
Schedule B is used to report taxable gifts made in prior years when the donor has previously filed Form 709. This schedule ensures that lifetime gift totals and previously applied credits are carried forward correctly into the current year’s gift tax computation.
Schedule B must be completed if the donor answered “Yes” to Part I, line 18a of Form 709, indicating that a Form 709 (or Form 709-A) was filed for any earlier year. If no prior gift tax returns were filed, Schedule B is not completed.
