IRS: Unchecked box does not spoil 5-year election

In a private letter ruling (PLR 200743001), the IRS concluded that the taxpayer's failure to check the 5-year election box on page 2 of Form 709 did not invalidate the taxpayer's election to prorate her 529 plan contributions over a 5-year period for gift-tax purposes. The taxpayer had substantially complied with the proposed regulations and Form 709 instructions by attaching a statement describing the gifts and indicating her intention to elect 5-year treatment. Private letter rulings may not be used as precedent.
Return to 529 News center