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.
John F. Fatino is a member attorney at Whitfield & Eddy Law in Des Moines, Iowa. He counsels financial cooperatives in proactive measures and risk avoidance including client education for board members and senior management regarding corporate governance and employment matters.
Frank Vari, JD, MTax, CPA, is the practice leader of FJV Tax, a CPA firm that specializes in complex international and U.S. tax planning. He can be reached via email at frank.vari@fjvtax.com or telephone at (617) 770-7286 or (800) 685-2324. He began his career in international and corporate tax consulting with Deloitte and KPMG in the Midwest and Dallas. He has also served as senior vice president of tax for a large publicly traded manufacturer as well as a large private equity-owned global publisher. Vari has also been an adjunct professor of taxation to law and business students on international tax and corporate mergers and acquisitions. He is also a frequent speaker and author on complex international tax topics and issues. He is a licensed CPA in Massachusetts and Ohio and a licensed attorney in Ohio and the U.S. Tax Court. His education includes a Bachelor of Science in Accounting, a Master of Taxation, and a Juris Doctorate degree.
Hal Rosenbluth is chairman & CEO of New Ocean Health Solutions.
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.
