AICPA Submits Comments for Clarification and Improvement on Form 709
Washington, D.C. (February 13, 2025) – In a letter submitted to the U.S. Department of the Treasury and the Internal Revenue Service (IRS), the American Institute of CPAs (AICPA) provided comments on the 2024 draft Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, and instructions.
The AICPA’s comments are in response to the recently updated IRS Form 709, which will likely be used for the first time later in 2025 or 2026 for e-filing. Currently, the Form 709 cannot be e-filed, and practitioners and taxpayers look forward to e-filing the Form 709 in the future. Comment letters relating to Form 709 also were sent by AICPA to the Treasury and IRS in 2020, 2022 and 2024.
The most recent letter contains suggestions including:
Allow e-filing of the Form 709.
Relocate language regarding gift splitting and annual exclusion.
Clarify the notice of spousal consent language.
Revise the language on Part I, line 19 regarding gifts to third parties.
Provide more space on Schedule A for columns (b) and (d).
Clarify reporting gifts to section 529 plans.
Remove "decedent" language in the Qualified Disclaimers section.
Update the Annual Exclusion section regarding gifts in trust.
Clarify GST tax implications for gifts to direct skip trusts.
Update the Consent of Spouse section regarding the timing of consent.
Provide a specific form or at least sample allocation/election statements to include with Form 709 filings for GST allocations/elections under section 2632(c).
Remove the requirement to provide a trust summary or attach the trust agreement to the Form 709, if the trust summary or trust agreement was previously included or attached, in order to start the running of the statute of limitations for adequate disclosure.
“Although the IRS just updated Form 709 and it is better than the prior version, the AICPA continues to have suggestions that would make the form and instructions clearer for practitioners and taxpayers,” says Eileen Sherr, AICPA Director of Tax Policy and Advocacy. We look forward to taxpayers being able to e-file the Form 709 later this year or next year. We have provided more suggestions and improvements to the form for IRS to consider that will help taxpayers and practitioners and save the IRS administrative processing and storage burdens as well.
About the American Institute of CPAs
The American Institute of CPAs (AICPA) is the world’s largest member association representing the CPA profession, with 400,000 members in the United States and worldwide, and a history of serving the public interest since 1887. AICPA members represent many areas of practice, including business and industry, public practice, government, education and consulting. AICPA sets ethical standards for its members and U.S. auditing standards for private companies, not-for-profit organizations, and federal, state and local governments. It develops and grades the Uniform CPA Examination, offers specialized credentials, builds the pipeline of future talent and drives continuing education to advance the vitality, relevance and quality of the profession.
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Background
December 18, 2024 - Updated Suggestions for Improvements to the 2024 Draft Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, and Updated Instructions
May 24, 2022 - Recommendations for the 2022-2023 Guidance Priority List (Notice 2022-21)
May 17, 2024 - Recommendations for the 2024-2025 Guidance Priority Plan (Notice 2024-28)
December 4, 2020 - Comments on Electronic Filing (e-filing) of Forms 706, 706-NA, and 709
Contact: Veronica L. Vera
202-434-9215
Veronica.Vera@aicpa-cima.com