Gift tax crackdown, Part 2

As we posted on 5/31/11, the IRS wants to crack down on people who transfer assets to family members with little or no consideration without filing a gift tax return. At that time a court had decided that the state of California was not required to give the IRS the names of such people, because the records existed at the county, not the state level. Now the court has changed its mind and told California to give the information to the IRS. The IRS is seeking such information from several other states as well.