I’ve got a question about the SF86 and gift taxes. I lost a family member a couple years ago that resulted in a good chunk of insurance money being given to me and another very close family member. We decided that it would be a smart idea to pool our money together and purchase a property we were interested in. I did this by transferring money to an account the family member opened for this purpose. Purchasing the property we wanted fell through (got bought out for a higher price) so the money has just sat in the account untouched. The account was not a joint account. Due to this, I needed to file a Form 709 declaring the money as a gift for that tax year. Since I wasn’t considering this to be a gift at the time, the existence of this form (and the requirement to file it) never crossed my mind. I’m currently in the process of working with a CPA to file an amended return with that information. Since the total amount is below the lifetime limit, I won’t actually owe any tax.
I could only find one other topic on the issue of amended tax returns and that one concerned income tax where the individual failed to file and actually owed money. My tax record has been perfect, I’ve always filed and always paid what was due when it was due. The above situation is the only aberration.
SF86 question 26.3 states:
In the past seven (7) years have you failed to file or pay Federal, state, or other taxes when required by law or ordinance?
My question is two fold:
- I’m guessing I need to answer ‘yes’ to the above now and explain the circumstances but I’m not quite sure.
- I know interim determinations are made by reviewing the SF86 for derogatory information. If I get this resolved, describe the resolution and provide the information I mention above, what are the chances this would affect an interim clearance?
I did find a previous thread on this topic (Amended Tax Return SF86 26C) but the issue described there is a lot more serious (the individual failed to file income tax and failed to pay on time, ended up owing money).
I do intend to speak to a clearance attorney at some point (gotta scrape the money together first!). Any help / explanations given here though are greatly appreciated!