Failure to file Gift Tax return form 709 25 years ago

In about 1998, my mother-in-law passed and her apartment was willed to my wife. 6 months later my wife put the apartment in my daughter’s name. The apartment is located in a foreign country and was
worth about $45,000 when it was transferred to my daughter. Should an IRS form 709 been filed at that time? If “Yes”, it was never filed. Does the form 709 handle late filings as described above?
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
  Click to see the full signature.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

The statute of limitations has long run out on this (I think it's 3 years for ordinary mistakes, 7 years for deliberate fraud), so I don't think the IRS can come after your wife for this.
--
Barry Margolin
Arlington, MA
  Click to see the full signature.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

The statute of limitations never runs on a return that was never filed. On the other hand if OP's wife was an only child, since the gift was made within nine months of the inheritance, it might be able to be treated as a qualified disclaimer, which would mean that no return would have been required.
--
Stu
http://DownToEarthLawyer.com
  Click to see the full signature.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Stuart O. Bronstein wrote:

Interesting. My wife, (a naturalized US citizen), was the only child of parents from a foreign country. All transfers of the property from wife to my daughter were according to the laws of the foreign country and occurred with 6 months of my wife's mother's death.
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
  Click to see the full signature.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Your in-laws were not subject to us tax laws at the time of their death?
If so, would the estate be required to file a gift tax return?
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
  Click to see the full signature.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

BeanSmart.com is a site by and for consumers of financial services and advice. We are not affiliated with any of the banks, financial services or software manufacturers discussed here. All logos and trade names are the property of their respective owners.

Tax and financial advice you come across on this site is freely given by your peers and professionals on their own time and out of the kindness of their hearts. We can guarantee neither accuracy of such advice nor its applicability for your situation. Simply put, you are fully responsible for the results of using information from this site in real life situations.