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.
Jeffery Kendall is EVP and general manager of global banking and financial solutions for Kony DBX, the digital banking arm of Kony.
Gaurav Banga is founder and chief executive officer of Balbix.
Rob Sobers is a senior director at cybersecurity firm Varonis. He has been writing and designing software for over 20 years and is co-author of the book “Lean Ruby the Hard Way,” which has been used by millions of students to learn the Ruby programming language. Prior to joining Varonis in 2011, Sobers held a variety of roles in engineering, design and professional services.
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.
