Gift Tax return for elderly client

[strongsilence]

My client is a single individual, age 85. She gave $21,000 to her son in 2025. Her taxable estate will likely have a value of $1,000,000 to $3,000,000. She is required to file a gift tax return. I don't think that a $3,000 reduction in the credit is high enough for me to bother her. She won't understand it. She is frail and she is depressed due to the passing of her husband. But the failure to file exposes me to the risk of liabilities from Circular 230.

I could prepare it and tell her to sign it, knowing that she can't understand it. Or I could likely meet my obligation by telling her: "Filing this return might lower your future estate tax" which I know would confuse her.

[BobKamman]

 de minimis non curat lex

[TaxGuyBill]

Tell her she it is legally required to be filed, with no tax owed.

Tell her if it is not filed, it is almost certain it will never affect anything.

Ask her if she wants to hire you to file it.

[strongsilence]

"Tell her she it is legally required to be filed, with no tax owed.  Tell her if it is not filed, it is almost certain it will never affect anything."

Told her.  She will decide later. I told her that I am okay with that. 

[strongsilence]

Minima sunt causa exsistentiae meae.

[sjrcpa]

Is the son married? Maybe she gave it to him and his spouse.

[IRonMaN]

If that is the biggest issue to hit me during tax season, I would be happy as can be.  As far as filing a gift tax return for that amount, you told her the rules and only one thought comes to mind ------------------ CAGMC.  

[abctax55]

Or was the gifting done prior to the husband's death?

[strongsilence]

After. I appreciate your thought. 

[strongsilence]

Unrelated but interesting: She deposits money into her son's account and he withdraws it. They rarely talk, for some unknown reason.   Immediately I thought to ask how she knows she isn't being scammed. She said that the withdrawals are small, <1000 and infrequent. 

[BobKamman]

Uninteresting but related:  What is your need to know, for preparing an income tax return?  One of the best ways to find trouble is to go looking for it.  Does she buy stuff from out of state?  Are you sure she shouldn't be filing use tax returns?

The gift tax question usually comes up from clients who know all about the $10K limit.  Most of them are nowhere near the estate tax exclusion.  I tell them that if they are asking me if a return is required, the answer is yes, and for a fee I will prepare it.  But if they are asking me if anything will happen if it is not filed, I tell them it is somewhat less likely than being struck by lightning on a sunny Wednesday morning.

[strongsilence]

What is your need to know, for preparing an income tax return?  

None.  I need to know for planning my workload and scheduling tax returns.

Does she buy stuff from out of state?  Are you sure she shouldn't be filing use tax returns?

No and Yes. Why does sending money to a son outside of her home state of California raise this issue for you?  I'm curious.