Which of the following scenarios would require filing Form 709?

Filing Form 709 is necessitated when a donor makes gifts that exceed the annual exclusion limit set by the IRS. The annual exclusion allows individuals to give a certain amount each year to each recipient without incurring gift tax or having to report the gift. For example, in 2023, this limit is $16,000 per recipient. If a donor gives more than this amount to any individual, it triggers the requirement to file Form 709, as it results in taxable gifts that may count against the lifetime gift tax exemption.

Gifts under the exclusion limit and those that are exclusively charitable do not require filing this form because they either fall under the allowable exclusion or are not subject to gift tax. Additionally, gifts made to immediate family members can also fall within the exclusion limits, so they wouldn’t necessitate filling out Form 709 unless the total given to a single individual during the year surpassed the exclusion threshold. This makes it clear that the scenario involving gifts exceeding the annual exclusion limit is the correct situation that requires this form to be filed.