The Internal Revenue Service is postponing the date for filing gift tax and generation-skipping transfer tax returns and making payments until July 15, 2020, because of the novel coronavirus pandemic.
The IRS issued Notice 2020-20 on Friday, extending the relief it provided earlier this month on the tax-filing and payment dates for most other types of tax returns. The IRS also said the associated interest, additions to tax, and penalties for late filing or late payment will be suspended for the gift tax and generation-skipping transfer tax until July 15.
Kevin M. Dulle is director of the experience innovations strategy team at NewGround, an architecture, design and delivery firm.
Robert Dominguez is an assistant general counsel and human resources consultant for Engage PEO. As part of the Engage HR team, Robert delivers comprehensive HR solutions for Engage’s California clients. He has represented employers in California on litigation matters and counseled them on HR related issues and changes in the law, such as California’s new Healthy Workplaces, Healthy Families Act.
Jay Starkman is the founder and CEO of Engage PEO. Engage provides HR services and counsel to help clients minimize costs and maximize efficiency through a full range of health and worker’s compensation insurance products, payroll technology and tax administration, risk management services and best-of-breed technology as part of an extensive suite of HR services. Starkman has a law degree from the University of Miami.
The relief is automatic and applies to any amounts due related to these types of returns. There’s no requirement to file for an extension and the three-month period between the original due date of April 15 and the new deadline of July 15 will be disregarded in terms of any interest, penalties or extra taxes for those who fail to file a Form 709 United States Gift and Generation-Skipping Transfer Tax Return by April 15.
Groups of tax and accounting professionals such as the American Institute of CPAs, the National Society of Accountants and the National Conference of CPA Practitioners have been pressing the IRS to provide additional forms of tax relief beyond the initial relief granted for tax payments from coronavirus victims.
