Because the lifetime gift exclusion is $5,340,000 ... and all that form does is track AGAINST the lifetime exclusion... IF you haven't given that much away yet, there will be no tax
If you miss the filing deadline
, the monthly late filing penalty is 5 percent of the net tax due.
But again, until you owe money (by giving away more than the 5 Million plus exclusion) there's no basis for the tax, so no tax is due, so there's no penalty.
Now if you gave more than 14,000 to any one person (the amount that's COMPLETELY excluded from reporting
AND tax) I would go ahead and file so that you'll be compliant SHOULD you every go over the exclusion.
But again, if you haven't given away more than the exclusion amount, there's no tax.
SOME practitioners are telling client's that's if they'll never even get close, there's no need to file... but I'd rather be safe than sorry, and go ahead and get them filed.
Let me know if you have any questions at all...