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.
founder and managing partner
Michael Law is a CPA subject matter expert manager, leading a team developing tax software at Canopy. Michael earned a master’s degree in taxation from Golden Gate University and has more than 20 years of experience in accounting and tax. Prior to Canopy, he served as the Vice President of Tax Operations for the Salt Lake City branch of Goldman Sachs. Connect with him @CanopyTax
Sophia Gin is a healthcare expert at PA Consulting. Focused on the global healthcare insurance sector, she leads strategy, growth and operations and has a successful track record of growing business footprint, managing medical cost, developing analytics and building strong payer-provider-vendor relationships.
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.
