Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Saturday, March 26, 2011

IRS Targets Intra-Family Real Estate Transfers

IRS The IRS is on a national hunt for gift tax evaders, and California is its latest target. The IRS wants a California state tax agency to turn over its database of all the individuals who transferred real estate to relatives from 2005 to 2010 for little or no consideration. The California BOE balked at voluntary cooperation, so the IRS filed a lawsuit in federal court in Sacramento called In the Matter of the Tax Liabilities of John Does. No action has been taken on the request yet.

The IRS nearly admits that it is going on a fishing trip for John Does. However, it considers it to be in well-stocked waters as evidenced by the widespread noncompliance in 15 other states that have already been targeted. Gift tax returns were filed 0% of the time in Ohio and 10% of the time in Virginia and Florida. Other states that gave up this data include: Connecticut, Hawaii, Nebraska, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Tennessee, Texas, Washington, and Wisconsin.

See William P. Barrett, IRS Targets Family Real Estate Transfers, Forbes, Mar. 24, 2011.

Special thanks to Janet Novack (Executive Editor, Forbes Media LLC) for bringing this to my attention. 


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