IRS Examines Virginia Families Who Make Land Gifts

Under current law, an individual can gift up to $5,000,000 in a lifetime without paying a gift tax.  Any transfer greater than $13,000 to a single person, however, is supposed to be reported to the IRS using Form 709.  Many people including those in Harrisonburg and Rockingham County who make land transfers to family have ignored this reporting requirement.  But now, with Virginia’s cooperation, the IRS has begun to scrutinize Virginia land transfer records to find those people who make land gifts and do not report the transaction to the federal government.  A qualified attorney with an accountant can help anyone considering a deed of gift or other land transfer to family comply with the law and avoid penalties.

The Wall Street Journal reported that the IRS has claimed in court filings that the noncompliance rate in Virginia is 90%.