The IRS is checking out records on land transfers in order to catch real estate reporting omissions, reported the Wall Street Journal last week. Calling the effort “low-profile but sweeping,” indicated that as of December 21, 2010, 323 taxpayers had been examined for failing to report gifts of land, while 217 additional individuals were being examined and 250 were being considered for “possible review”[1]. Individuals found to be in violation would be subject to penalties, and tax advisers could also face scrutiny if they played a role in the failure to report a transfer.
Many people believe that gift-transfers of land do not have to be reported if the person making the gift has not exceeded the $5 million lifetime tax-exempt gift limit. However, any parcel of land exceeding $13,000 in worth must have a gift-tax return filed. The IRS reported that many states have 90 to 100 percent non-compliance in this area and lawyers in the field warned that “we can expect additional examinations” of this area of non-compliance as the IRS obtains more land-transfer records.
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[1] http://online.wsj.com/article/SB10001424052702304066504576345672097256428.html?mod=googlenews_wsj
One must certainly question why the Private Enforcement arm of the Privately Owned Central Bank governed at the Federal/National level would even be concerned with matters contained WITHIN a state?
We are a nation United for International Purposes and INTERSTATE commerce. When Property is transferred from one party to another WITHIN a State – it’s not subject to any “federal” or “national” Laws. The IRS is wasting their time and resources on a matter which they have little to no jurisdiction in.