Parents Can Also Enroll Eligible Children in $1,000 Pilot Program Through IRS Online Account

(UCBJ) – The Department of the Treasury and the Internal Revenue Service have issued new guidance providing gift tax reporting relief for certain contributions made to Trump accounts created under the Working Families Tax Cuts. Revenue Procedure 2026-25 establishes a safe harbor that allows qualifying contributions made by individual donors to Trump accounts during a given tax year to avoid federal gift tax reporting requirements, provided specific conditions are met.

“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,” said IRS Chief Executive Officer Frank J. Bisignano. “The relief granted will reduce the potential burden placed on friends and family who want to put money into a Trump account.”

The IRS also announced that parents, guardians and other authorized individuals can use an IRS Individual Online Account to complete Form 4547, Trump Account Election(s), to establish an initial Trump account for a child with a Social Security number. The election must be made before the calendar year in which the child turns 18.

Children who are U.S. citizens born between 2025 and 2028 may also qualify for a $1,000 pilot program contribution. Eligible parents or authorized individuals can elect the contribution by checking the appropriate box on Form 4547.

Additional information about Trump accounts is available at trumpaccounts.gov, while details on the Working Families Tax Cuts provisions can be found on IRS.gov.

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