Sumner Redstone's 40-Year-Old Gift

Abstract

In this article the authors discuss the alleged gift tax deficiency case against media mogul Sumner Redstone. The IRS argues that Mr. Redstone made a taxable gift in 1972 when, in connection with the settlement of an intrafamily dispute, he transferred shares of a family-owned business to trusts for his children. The authors suggest that the integrity of a self-reporting gift tax system depends in part on the ability of the IRS to seek to impose tax on non-disclosed transfers, however old they may be. Sumner Redstone likely will face a tax bill well in excess of a million dollars.

Keywords: Redstone, Viacom, gift tax, deficiency, IRS, Service

JEL Classification: K19