IRS Calculate Penalty
February 1st, 2010Question: Gift tax penalty? (professional)?
Gave 75,000.00 a year for the last 10 years to one person. Gave 90,000.00 to one person last year. Gave 36,000.00 to one person every year for the last 5 years. Have never filed gift tax. How do you calculate percentage wise and how much would I owe the IRS now?
Answer: Please don’t take advice from this board. This is a very complex issue where the ramifications for doing something incorrect could be disastrous. SEEK A PROFESSIONAL. For example, the limits mentioned from the previous answerer are estate limits, not gift limits. For tax years 2002 to 2010, the Unified Credits for Gift Tax is capped at $345,800 which is for gifts given up to $1,000,000. Translation: the first $1,000,000 in gifts you give (that are more than $11,000 per year per receipent) will not incur a tax on your behalf. The recipient never pays federal tax. The increasing amounts mentioned by the previous answerer refer only to estate tax. Since you are talking about gifts and since you have not passed away, please use the gift limits.
And, since you started giving these gifts prior to 2002, you will be dealing with different limits and exclusions. For example, the $11,000 per person per year “Annual Exclusion” drops to $10,000 from 1982 to 2001…as does the maximum credit.
You obvious have (or at least, had) plenty of money to afford to have a professional help you out. If you do it yourself and screw up, you could be out a lot more than the few hundred dollars a professional will charge you.
Good luck
SC lawmakers: Unemployment agency needs leadership
South Carolina legislators want the three commissioners running the state Employment Security Commission gone after a series of flaps, including news that the jobless benefit agency faced nearly $1 million in penalties for not paying income taxes withheld from unemployment checks.
Posted in 
Tags: