Estate and Gift Tax Audits

Estate and gift tax audits are reviews conducted by tax authorities to ensure compliance with tax laws regarding the transfer of wealth. An estate tax applies to the value of a deceased person's assets, while a gift tax is levied on large monetary or property gifts given during a person's lifetime. During an audit, officials assess whether the reported values and exemptions are accurate and if any tax owed has been correctly calculated. These audits help prevent tax evasion and ensure fairness in the tax system by verifying that all transfers of wealth are properly reported and taxed.