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 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.
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.
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.
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?
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