When does the recipient of a gift have to pay the gift tax?

The IRS may look to the recipient of the gift to pay the gift tax if the donor did not pay the tax.  Usually, the only situation where the IRS pursues the recipient of the gift is after the donor is deceased.  Internal Revenue Code Section 6324(b) states that when the donor does not pay the tax, the IRS can seize the gift for its value or otherwise look to the donee to pay.  If the gift is real property, before accepting responsibility for the tax make sure the IRS has not overvalued the gift and also make sure of the status of any capital gains tax on the property.  Also, you need to consider whether or not the donor exceeded the lifetime unified gift and inheritance tax exclusion.  If the donee does have to pay some or all of the tax, he can set up an installment agreement if necessary.