Tax Attorneys Want Higher Threshold for Reporting Foreign Gifts

Tax lawyers asked the IRS to increase the reporting threshold for gifts received from a foreign individual or estate to $500,000 from $100,000, following release of proposed regulations that would change information-reporting requirements for foreign trusts and gifts.

In a letter to the IRS, lawyers from the tax section of the American Bar Association recommended the change because of the dollar’s decline in value since current foreign gift reporting guidance was written in 1997.

“Given the reduction in the value of the dollar in the 27 years since the issuance of Notice 97-34, amounts transferred by gift or ...