Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 54-6

1954-1 C.B. 205

IRS Headnote

A husband and wife are entitled to the gift-splitting benefits under the provisions of section 1000(f) of the Internal Revenue Code where one spouse files a Federal gift tax return for himself and, in addition to signifying his own consent, executes thereon as agent for his absent spouse a consent to treat the gift as having been made one-half by each spouse, and files a gift tax return for the absent spouse as her agent, provided the return filed and the consent executed by the one spouse as agent for the other are ratified within a reasonable time after the absent spouse is able to do so.

Full Text

Rev. Rul. 54-6

Advice is requested whether a husband and wife are entitled to the gift-splitting benefits under the provisions of section 1000(f) of the Internal Revenue Code in a situation where one spouse files a Federal gift tax return for himself and as agent for his absent spouse executes thereon a consent to treat the gift as having been made one-half by each spouse, and in addition files a gift tax return for the absent spouse as her agent, and the return filed and the consent executed by the one spouse as agent for the other are ratified within a reasonable time after the absent spouse is able to do so.

In the instant case the wife was the actual donor of the gift. In the absence of her husband, who was on active military duty outside the United States, she filed a timely gift tax return for herself and executed thereon, as agent for her husband, a consent to treat the gift as having been made one-half by each spouse. At the same time a  gift tax return was filed for the husband, as donor, and signed by the wife as agent. The return and consent executed by the wife as agent were ratified by the husband subsequent to March 15 following the close of the year in which the gift was made but within a reasonable time after he was able to do so.

Section 1000(f) of the Internal Revenue Code, relating to gifts by a husband or wife to a third party, provides in pertinent part that a gift made after the date of the enactment of the Revenue Act of 1948 by one spouse to a person other than his spouse shall, for the purpose of the Federal gift tax, be treated as having been made one-half by each spouse. This provision of the gift tax law is applicable only if both parties consent (in accordance with the regulations) to treat all such gifts made during they year by either while married to the other as having been made one-half by each spouse. It is further provided that such a consent may not be signified after the 15th day of March following the close of the calendar year in which the gifts were made, unless before such 15th day no return has been filed for such year by either spouse. Section 1006(b) of the Code provides that Federal gift tax returns must be filed on or before March 15 following the close of the calendar year in which the gifts were made.

Section 86.3a of Regulations 108, relative to the signifying of a consent as required by section 1000(f) of the Code, makes no provision for the execution of a consent by an agent. However, section 86.20(a) of the regulations, promulgated pursuant to section 1006 of the Code, relative to the filing of gift tax returns, contemplates execution of a return by an agent and provides, so far as here material:

The return shall not be made by an agent unless by reason of illness, absence, or nonresidence, the person liable for the return is unable to make it within the time prescribed. * * * If by reason of illness, absence, or nonresidence, a return is made by an agent, such return must be ratified by the donor or other person liable for its filing within a reasonable time after such person becomes able to do so; otherwise the return filed by the agent will not be considered the return required by the statute. * * *

Section 86.50(b) of the regulations further provides that the provisions of section 86.20(a), supra , are applicable with respect to the filing of Federal gift tax returns in the case of a husband or wife who consent to the application of section 1000(f) of the Code.

It is accordingly held that a husband and wife are entitled to gift-splitting benefits under the provisions of section 1000(f) of the Internal Revenue Code in a situation where one spouse files a Federal gift tax return for himself and, in addition to signifying his own consent, executes thereon as agent for his absent spouse a consent to treat the gift as having been made one-half by each spouse, and as such agent also files a gift tax return for the absent spouse, provided the return and consent executed by the one spouse as agent for the other are ratified within a reasonable time after the absent spouse is able to do so.