Gift Tax Statute of Limitations

IRC 6501(a) defines the statute of limitations on assessment of a gift tax return as three years from when it is filed.


IRC 6501(c)(9) provides an exception if a gift is not reported on the return to extend the statute of limitations.


In Chief Counsel Advice 201643020, the IRS determined that prior year gifts that were not disclosed on a gift tax return do not count as unreported gifts under IRC 6501(c)(9). If a taxpayer fails to disclose prior year gifts on a gift tax return, then the 3 year statute of limitations will still apply.


Relevant Cites:
Chief Counsel Advice 201643020
IRC 6501