Exception to Filing Requirement

Receipts not exceeding the section 2801(c) amount. If you are a U.S. citizen or resident of the United States, a domestic trust, or an electing foreign trust, you do not need to file Form 708 for the applicable calendar year if the total fair market value of all covered gifts and covered bequests received during the applicable calendar year is less than or equal to the annual exclusion for gifts. See section 2801(c). For calendar years 2025 and 2026, the amount is $19,000. The $19,000 amount is subject to an annual inflation adjustment for calendar years after 2026. The value of all covered gifts and covered bequests includes the total amount of distributions from foreign trusts that are attributable to covered gifts or covered bequests. Note that this exception to the filing requirement for the applicable calendar year does not apply to you if either you are a trust becoming a migrated foreign trust during the applicable calendar year or you are a foreign trust making an election for the applicable calendar year to be treated as a domestic trust for section 2801 tax purposes.