When an IRS Error Leads to an Incorrect Gift Tax Assessment
An IRS error related to a gift tax return can result in a taxpayer's account reflecting a liability that should not be due. Even when the source of the assessment is identified, the IRS may still need to make the appropriate account adjustment before the liability is removed.
Challenging a $150,000 Gift Tax Assessment
Our client came to us after the IRS assessed a $150,000 tax liability in error related to their gift tax return.
Although the liability resulted from an IRS error, correcting the account required more than simply identifying the mistake. Our team worked with the IRS and advocated for the taxpayer’s account to be corrected so the erroneous assessment could be removed.
Working With the IRS to Correct the Assessment
After successfully urging the IRS to correct the error, the liability was eliminated in full.
$150,000 Tax Liability Reduced to $0
The IRS correction removed the erroneous liability from the client's account.
Result: The client's tax liability was reduced from $150,000 to $0.
Frequently Asked Questions
Form 709, the United States Gift (and Generation-Skipping Transfer) Tax Return, is used to report certain transfers subject to federal gift and generation-skipping transfer tax rules. Whether a taxpayer is required to file depends on the transfers involved and applicable federal tax requirements.
No. A taxpayer may be required to file a federal gift tax return even when no gift tax is ultimately due. Filing requirements and the amount of tax owed depend on the circumstances and applicable tax rules.
The appropriate response depends on the reason for the assessment and the status of the taxpayer's account. Reviewing the assessment and the information reflected by the IRS can help identify what may need to be addressed.
The appropriate process depends on what caused the assessment. Addressing an incorrect liability may involve communicating with the IRS and providing information relevant to the requested correction.
Not necessarily. Identifying the source of an incorrect assessment does not by itself mean the liability has been removed from the taxpayer's account. The IRS may still need to make the appropriate correction.
Need Help With an Incorrect IRS Tax Assessment?
An incorrect IRS assessment can leave your account reflecting a tax liability that may need to be addressed. Identifying the source of the issue can help determine the appropriate next steps.
Contact The Wilson Firm to discuss your tax matter. Our team represents taxpayers in federal tax disputes involving incorrect assessments and IRS account issues.
Why Hire Us?
At The Wilson Firm, we provide personalized, strategic representation tailored to each client's situation. Whether you're facing a government investigation, a tax dispute, or enforcement action, our attorneys work closely with you to understand the facts, assess the risks, and pursue the most favorable resolution possible. Based in The Woodlands and serving the Greater Houston area, The Wilson Firm can also represent businesses nationwide in federal IRS worker-classification and employment tax matters.
We understand that legal matters can be complex and overwhelming. Our role is to simplify that complexity—handling communications with tax authorities, developing a clear strategy, and guiding you through each step with confidence.
From high-stakes disputes to proactive planning, we are committed to protecting your interests and delivering practical, results-driven solutions.
Contact us today to learn how our experience and approach can help you move forward with clarity.
