IRS Eases Gift Tax Reporting for Trump Account Contributions

"By granting this relief, the IRS has responded to concerns raised by taxpayers who planned to make contributions to a Trump account but worried such donations would trigger the gift tax reporting rules," IRS Chief Executive Officer Frank Bisignano said in a statement. "The relief granted will reduce the potential burden placed on friends and family who want to put money into a Trump account."

The ruling removes a paperwork burden on both families and the agency. Lawrence Pon, a certified public accountant in Redwood City, California, said the IRS processes roughly 300,000 gift tax returns per year. "If Trump Account contributions were subject to this requirement, the number of returns will be in the millions," Pon said. "It's going to remove paperwork burdens on taxpayers, so I think it's a very positive thing the IRS has done for us."

Trump Accounts, also known as 530A accounts, are available to any U.S. child under 18 with a Social Security number. The Treasury Department deposits a one-time $1,000 pilot contribution for babies born from 2025 through 2028. More than 6 million children have been enrolled so far, Treasury said. Parents and guardians can open an account by filing IRS Form 4547 with their tax return or through TrumpAccounts.gov.