Question $7$

Six years ago, John made gifts of all of his assets to his family. Although the transfers would have generated gift taxes, none were paid, and no gift tax returns were filed. No one knows where John currently is or even if he is still alive. The IRS discovered the transfers and is pursuing the donees for the gift tax due. Which of the following responses best reflects the current law regarding the collection of the gift tax?

Only the donor is responsible for the payment of any gift tax liability.

The donees have the primary responsibility for the payment of any gift tax liability.

The statute of limitations has expired preventing the IRS from pursuing collection of the gift tax from donor and donees.

Where the donor cannot pay or cannot be located the IRS can pursue the donees for the tax under the doctrine of transferee liability.

None of the above.