The IRS is getting serious about going after taxpayers who transfer property without filing the proper gift tax returns. This court order is an excellent example of why clients need sound advice and a properly planned gifting strategy.

Federal Judge Green Lights IRS Search For California Gift Tax Cheats

A federal district court judge has given the Internal Revenue Service permission to serve a “John Doe” summons on the California State Board of Equalization demanding the names of residents who transferred property to their children or grandchildren for little or no money, from 2005 to 2010. The IRS wants those names as part of a crackdown on what it believes is the widespread failure to file required tax returns when real property is passed between family members.

Click here for the full article from Forbes – Federal Judge Green Lights IRS Search For California Gift Tax Cheats