Michael Petruccelli says; For starters IRS is checking the transfer records from 15 states: Conn., Fla., Hawaii, Neb., N.H., N.J., N.C., Ohio, PA.,Tenn., Texas, Va., Wash. and Wis. So far, over 500 people have been audited or are under examination, and many more are in the pipe line. IRS is serious about this. When Calif. Board of Equalization refused to voluntarily disclose the data, the Service went to court to force it to comply. Even if gift tax isn't due on a transfer, a return still has to be filed with the IRS if the amount of the gift exceeds the gift tax annual exclusion...currently $13,000.
