Even if you have made a taxable gift, Form 709 isn't as big of a burden as many think. That's because unless you've made a huge gift, you won't have to pay any actual gift tax.

Form 709 reports asset transfers subject to the federal gift tax or generation-skipping transfer taxes. “Ripcord technology was purpose-built to deliver on the needs of the Pilot IRS Program.

In 2025, with a $13.99 million exemption, you’d only pay gift tax on $1.01 million. Reminder: Filing Form 709 doesn’t mean you owe tax — it just tracks how much of your exemption you’ve used.

For example, say you make a gift of $114,000 to someone this year. The first $14,000 is covered under the annual exclusion amount, leaving $100,000 remaining as a taxable gift.