A gift tax return is a form that individuals must file with the Internal Revenue Service (IRS) when they give gifts exceeding a certain value in a year. As of 2023, this threshold is $17,000 per recipient. If a gift surpasses this amount, the giver is required to report it, even if no tax is owed. The purpose of the gift tax return is to track large gifts and ensure compliance with tax laws. It helps the IRS monitor potential tax liabilities and maintain accurate records of an individual's lifetime gift amounts, which can affect future estate taxes.