My step-father naively, but with good intentions gave away my recently deceased mom's car to a family friend. I'm guessing the vehicle is worth $20k - over the $14,000 allowance for gift tax.
He certainly has no idea about the tax rules surrounding this, and likely neither does the recipient. Because of this, without any intervention by myself, he won't be reporting the gift on his taxes.
What are the ramifications of this - and how would the IRS even know this exchange took place? If it matters, there is probably no will, and with the recentness of my mother's passing, no probate things (not sure of the terminology) have taken place.
Please know, I'm not asking for ways to skirt the tax system, but some guidance on how this can come back to harm him, financially. This will help me decide how much (if at all) I need to butt in.