What is the penalty for not filing an IRS gift tax form when no tax is due?
There will be no penalty if no tax is due, though it might come back and haunt your heirs when the unified credit is applied to the estate, and penalties would be assessed against the estate, going back to the original returns due dates. Anyway, you do not need to file form 709 if:
- You made no gifts during the year to your spouse.
- You did not give more than $15,000 to any donee.
- All the gifts you made were of present interest.