What is the requirement if the donor committed an error in the computation of tax?

When a donor makes an error in the computation of tax, the requirement is that the donor must pay a deficiency tax regardless of possession. This means that the responsibility for correcting the tax error falls on the donor, and they must address any shortfall in tax that was owed.

The principle here is that taxes are ultimately the responsibility of the entity that is liable for them— in this case, the donor. If the donor miscalculated the amount of tax due, it is their obligation to rectify the situation by paying any deficiency that arises from this miscalculation. Therefore, even if the donee (the recipient of the gift) possesses the gift, it does not exempt the donor from their responsibilities regarding tax liabilities.

This highlights the importance of accurate tax computation for donors, as errors can lead to financial penalties or legal implications that they must manage.