"She never moved the stars from their courses, but she loved a good man, and she rode good horses."
Cooper is the jockey-club-registered, Off-the-Track Thoroughbred
(aka OTTB) that I fell in love with and purchased August 22, 2010. What can I
tell you about Coop? He is a dark bay gelding, nearly 16h tall.He has a
jockey-club tattoo under his upper lip which proves he is 16 years
young, a registered TB, and likely had at last one start at the gate.
But
that doesn't really tell you anything about him at all. And there isn't
much I can tell you from here. To understand Cooper, you would have to look into his eyes. Just one look and you would see the
trademark Thoroughbred courage. This boy is nothing but heart and soul.
Intelligent. Kind.
I read the sale ad. I looked at my budget. I
considered my other horses. I added up the costs. But it was all over
when I to see him.
He had me at Hello.
I have dreamed of a horse like Cooper since I was the size of my
granddaughter, Lexi. I drew his picture a thousand times on every scrap
piece of paper until I was old enough to realize it was never going to
happen. I lived almost a whole life that was mostly just fine without
him.
But now he is mine ... or rather, I am his. And this is our story.
A new IRS gift tax compliance initiative responds to suspicions of
widespread failure to file gift tax returns.
Surprise. It’s a big year for the IRS and they’ve been opening
many new fronts in the drive to assert tax law compliance. One of the
largest and most unique fronts the IRS has opened has been a
far-reaching gift tax audit on real estate transfers. As a recent
Forbes article
reports, the battle is tough going for the IRS, too.
The IRS estimates that somewhere between 60% and 90% of taxpayers will
fail to file a gift tax return, despite having engaged in activity
that requires a filing. As a result, it’s clear this is neither a
petty problem in the Service’s eyes nor is it merely chump change
waiting to be claimed. The problem with enforcing the gift tax has
been the inability to catch someone in the act.
Never fear, the IRS has found just the right tool in the form of land
records maintained at the state and local levels. Why? These public
records allow the IRS to independently track the movement of
properties between persons that haven’t shown up in gift tax
returns. Family homes are just the sort of thing to pass easily
between family members. However, things are rarely that easy when the
IRS gets involved and that is just what’s happening now.
The lesson to be learned, regardless whether you have transferred any
land in the past, is to be aware and diligent. While there are many
ways and means to accomplishing your wealth transfer goals, you have
to use the right tools.
Alternatively, those taxpayers who have transferred property without
due diligence to the IRS’s gift taxes (and anyone following this
story) have a grand development to watch. The IRS needs the states’
compliance to make their plan work and, while this has meant a great
deal of cooperation in much of the country, it has met with resistance
in California. There the courts have bristled at the IRS’s attempts
to demand records. Forbes has a story to tell in the original article
and the question remains: Will State courts further mire the IRS’s
great gift tax audit effort?
Reference: Forbes (October 19, 2011) “The New Gift Tax Audits: IRS
Identifies Non-Filers Using State Property Records
