Filed Gift Tax Extension Form 8892 But Realized I Don't Need to File Form 709 After All
Title: Filed Gift Tax Extension Form 8892 But Realized I Don't Need to File Form 709 After All 1 Back in February, I panicked and submitted Form 8892 to get an extension for filing the gift tax Form 709. I was worried because I had helped my three adult children with down payments on their homes last year, totaling about $45,000 per child. Now that I've sat down to actually complete the Form 709, I'm realizing that since I gave each child less than the annual exclusion amount ($17,000 per person for 2023), I don't actually need to file anything at all. My question is: since the IRS received my extension request Form 8892, will they be flagging my account expecting a Form 709 submission? Will I run into problems if I just don't file anything now that I know I don't need to? I'm worried about getting some kind of notice or penalty for "failing to file" even though there's technically nothing I need to file. Any insights would be much appreciated! This is my first time dealing with gift tax issues and I'm pretty confused.
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Rajiv Kumar
12 You're absolutely fine not filing anything! The IRS doesn't track Form 8892 extensions against actual Form 709 filings in a way that would trigger any notices or penalties. Many taxpayers file extensions out of caution and then realize they don't need to file the actual return. This happens with income tax extensions too. Since your gifts were under the annual exclusion amount per recipient ($17,000 in 2023), you correctly determined you don't need to file Form 709. The extension is simply permission to file later without penalty IF you needed to file. Since you don't need to file at all, the extension becomes irrelevant. Think of it like reserving a seat at a restaurant and then not showing up - they don't charge you for the meal you didn't eat!
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Rajiv Kumar
•3 Thank you for the clear explanation! I just wanted to double-check - what if some of my gifts were actually exactly at the $17,000 limit? Does that change anything, or is it only gifts exceeding the limit that trigger filing requirements?
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Rajiv Kumar
•12 Gifts exactly at the annual exclusion amount ($17,000 in 2023) still don't require filing Form 709. You only need to file when you exceed that amount per recipient during the calendar year. If you gave someone $17,000 or less, there's no filing requirement. It's only when you give someone $17,001 or more in a single year that you need to report it, even though you wouldn't necessarily owe any tax unless you've used up your lifetime exemption.
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Rajiv Kumar
8 I went through this exact same stress last year! I found out about taxr.ai (https://taxr.ai) after hours of Googling gift tax rules and trying to figure out if I needed to file anything after requesting an extension. They analyzed my situation in minutes and confirmed I didn't need to file Form 709 since none of my individual gifts exceeded the annual exclusion. Their system shows you exactly which forms apply to your situation and why. Saved me so much anxiety!
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Rajiv Kumar
•15 How exactly does their analysis work? Do you have to upload your financial information or something? I'm in a similar situation but nervous about sharing my financial details online.
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Rajiv Kumar
•9 Sounds interesting but I'm skeptical. Couldn't you just call the IRS directly and ask them? Seems like putting your financial info into some random website might not be the safest approach.
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Rajiv Kumar
•8 They have an AI system that asks you specific questions about your gifts - the amounts, recipients, and timing - without needing to upload sensitive documents. You just answer questions about your situation, and it tells you which tax rules apply. For Form 709 specifically, they quickly identified that my gifts were under the annual exclusion amount and showed me the relevant IRS guidelines. They don't store your financial data permanently, and everything is encrypted.
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Rajiv Kumar
15 Just wanted to follow up - I tried taxr.ai after posting here and it was actually really helpful! The system just asked me questions about my gifts (amounts and who I gave them to) and immediately clarified that I didn't need to file Form 709 since I hadn't exceeded the annual exclusion amounts. It even explained the difference between filing an extension and needing to file the actual form. No need to upload any sensitive documents, just answered questions about my situation.
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Rajiv Kumar
17 If you're still worried about this and want to confirm directly with the IRS, good luck getting through to them! I spent 3+ hours on hold trying to ask a simple gift tax question last month. Eventually found Claimyr (https://claimyr.com) - they have this system that calls the IRS for you and when an agent is actually on the line, they connect you. You can see how it works here: https://youtu.be/_kiP6q8DX5c. After using their service, I got through to someone who confirmed that filing an extension doesn't obligate you to file if you don't otherwise need to.
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Rajiv Kumar
•6 Wait, how does this actually work? Does it just auto-redial until it gets through? I've been trying to reach the IRS about a totally different issue for weeks with no luck.
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Rajiv Kumar
•9 This sounds too good to be true. The IRS is impossible to reach. I'd be shocked if this actually works - probably just takes your money and you still can't get through.
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Rajiv Kumar
•17 It uses an automated system that waits on hold for you. It continuously calls and navigates the IRS phone tree until it reaches a human, then calls your phone to connect you. You don't have to sit through the hold music or keep redialing. It's not just auto-redialing - it actually stays on the line and waits through the hold times for you, which is why it works. It basically does the waiting so you don't have to.
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Rajiv Kumar
9 I need to eat my words. After posting my skeptical comments, I gave Claimyr a try out of desperation because I couldn't get through to ask about my late father's estate tax issues. It actually worked! Got connected to an IRS agent in about 45 minutes (while I went about my day), when I had previously spent 4+ hours on multiple days trying myself. The agent confirmed that filing an extension doesn't create any obligation if you determine you don't need to file. Just wanted to share since I was wrong about this service.
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Rajiv Kumar
22 Just a heads up - while it's true you don't need to file if your gifts are under the annual exclusion, make sure you're calculating everything correctly. Did you give any other gifts to these same people during the year? Cash, paying bills directly, or adding someone to property deeds all count. Also, if you're married, you and your spouse can split gifts (effectively doubling the exclusion amount) but you DO need to file Form 709 to elect gift splitting even if you don't owe any tax.
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Rajiv Kumar
•1 Thanks for this additional info! The only gifts I gave were those three payments for my kids' down payments. I'm widowed, so no spouse to worry about for gift splitting. I definitely didn't exceed $17,000 per person - each payment was exactly $15,000 since that was the exclusion limit I remembered from a few years ago (before it increased).
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Rajiv Kumar
•22 You're all set then! The annual exclusion was $15,000 for 2018-2021, then increased to $16,000 for 2022, and $17,000 for 2023. Since your gifts were $15,000 each, you're well under the threshold even for 2022. And being widowed means you don't need to worry about the gift-splitting election. Just keep good records of these gifts for your own files - dates, amounts, and recipients. This can be helpful in case questions ever arise in the future, but you definitely don't need to file Form 709.
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Rajiv Kumar
5 Somewhat related question - if I did need to file Form 709 but had already filed an extension with Form 8892, when would the new deadline be? Is it October 15th like regular income tax extensions?
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Rajiv Kumar
•19 Gift tax extensions work differently than income tax extensions. Form 8892 extends the deadline to October 15th, but only if you also filed an extension for your income tax return (Form 1040). If you didn't extend your 1040, the 709 extension only goes to April 15th plus 6 months, which would also be October 15th. So either way, October 15th would be your deadline.
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