A Gift Tax Return, specifically in the context of the United States, refers to IRS Form 709. This form is used by individuals to report gifts that exceed the annual gift tax exclusion amount and to calculate any potential gift tax owed. The purpose of the Gift Tax Return is to track and regulate large lifetime gifts made by individuals to prevent the avoidance of estate taxes.

Here are key points related to the Gift Tax Return (Form 709):

1. **Filing Requirement:**
– If a person makes gifts to an individual that exceed the annual gift tax exclusion (the current annual exclusion is $15,000 per person), they are required to file IRS Form 709.

2. **Gifts Subject to Reporting:**
– Gifts subject to reporting on Form 709 include not only gifts of cash but also the fair market value of property, assets, or financial instruments transferred as gifts.

3. **Annual Exclusion:**
– The annual exclusion allows individuals to give a certain amount of money or property to any number of individuals each year without incurring gift tax. Gifts that fall within the annual exclusion do not need to be reported on Form 709.

4. **Lifetime Exemption:**
– In addition to the annual exclusion, individuals have a lifetime gift tax exemption, which is the total amount of gifts they can give over their lifetime without paying gift tax. The lifetime exemption reduces the taxable value of gifts beyond the annual exclusion.

5. **Gift Splitting for Married Couples:**
– Married couples can elect to “split” gifts on Form 709, effectively combining their annual exclusions for gift tax purposes. This allows them to collectively give up to twice the annual exclusion amount to a single individual without incurring gift tax.

6. **Gifts to Spouses:**
– Gifts between spouses who are both U.S. citizens are generally not subject to gift tax, and there is an unlimited marital deduction. While gifts to non-citizen spouses may be subject to limitations, certain elections and exclusions may apply.

7. **Gifts for Educational and Medical Expenses:**
– Payments made directly to educational institutions for tuition or to medical providers for medical expenses on behalf of someone else are generally not subject to gift tax. These exclusions are in addition to the annual gift tax exclusion.

8. **Due Date:**
– Form 709 is typically due on April 15 of the year following the year in which the gift was made. However, if the donor is on an extension for their income tax return, the due date for Form 709 is also extended.

9. **Penalties for Non-Filing:**
– Failure to file Form 709 when required may result in penalties. It’s important to comply with filing requirements and consult with tax professionals for accurate and timely submission.

10. **Documentation and Valuation:**
– Proper documentation of gifts and accurate valuation of the gifted property are essential when completing Form 709. This may include obtaining appraisals for certain types of property.

Given that tax laws can change and are subject to interpretation, individuals with complex financial situations or those making significant gifts should consult with tax professionals or estate planning attorneys to ensure compliance with current tax regulations.