Gift Tax Returns and 529s

Column distributed by Hearst Connecticut Media Group.

Links to resources referenced:

Fidelity: “Making the most of your 529 plan”
- https://www.fidelity.com/learning-center/wealth-management-insights/529-superfunding-and-other-ways-to-save-for-college
  - Related column excerpt:
    - “To read more about 529 superfunding, see Fidelity’s article ‘Making the most of your 529 plan’ and Saving for College’s article ‘Do You Have to Pay Gift Taxes on 529 Contributions.’”
Saving for College: “Do You Have to Pay Gift Taxes on 529 Plan Contributions?”
- https://www.savingforcollege.com/article/dont-worry-too-much-about-the-annual-gift-tax-limit
  - Related column excerpt:
    - “To read more about 529 superfunding, see Fidelity’s article ‘Making the most of your 529 plan’ and Saving for College’s article ‘Do You Have to Pay Gift Taxes on 529 Contributions.’”
IRS 2025 Form 709
- https://www.irs.gov/pub/irs-pdf/f709.pdf
  - Related column excerpt:
    - “What happens if you don’t file a gift tax return when you should (IRS Form 709), that is, when you exceed the $19,000 annual exclusion threshold?”
Cornell Law School: Legal Information Institute
- https://www.law.cornell.edu/uscode/text/26/6501
  - Related column excerpt:
    - “Under Section 6501(c)(3) of the U.S. Tax Code, if no tax return is filed, ‘the tax may be assessed, or a proceeding in court for the collection of such tax may be begun without assessment, at any time.’ In other words, there is no statute of limitations -- penalties for failure to file can start to accrue to when the gift was made even if decades have passed. In comparison, a three-year statute of limitations applies to filed returns.”
Viewpoints: Tax Notes
- https://scholarship.law.duke.edu/cgi/viewcontent.cgi?article=5899&context=faculty_scholarship
  - Related column excerpt:
    - “Should others file? There is no minimum gift amount that triggers the gift tax filing requirement. Perhaps there should be. A possible $1 million minimum was discussed by the authors of ‘Rethinking the Penalty for the Failure to File Gift Tax Returns.’”