IRS says Trump Account contributions will not trigger annual gift tax reporting requirements

Contributions to Trump Accounts will not be subject to gift tax reporting under the safe harbor rules, according to guidance issued Monday by the U.S. Department of the Treasury and the Internal Revenue Service . As a result, parents, guardians, grandparents and others can contribute up to $5,000 a year in after-tax dollars to a Trump Account and they will not be required to file a gift tax return. "By granting this relief, the IRS has responded to concerns raised by taxpayers who planned to make contributions to a Trump account but worried such donations would trigger the gift tax reporting rules," IRS Chief Executive Officer Frank Bisignano said in a statement. "The relief granted will reduce the potential burden placed on friends and family who want to put money into a Trump account."