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.
Brad Peterson is a partner in Mayer Brown’s Chicago office and leads the Technology Transactions practice. Brad has focused his practice for 20 years on helping companies work better with their technology and operations suppliers. In the past five years, he has represented clients in increasing numbers of contracts with digital services providers, including cloud, data analytics, “as a Service” and automated process scopes and cyber security and privacy issues related to those scopes.
Dan Masur is a leader of Mayer Brown’s Technology Transactions practice. Dan has represented national and international clients in a broad range of on-shore, near-shore, and offshore information technology and business process sourcing transactions involving global and niche outsourcing providers, offshore captives and various hybrid structures. His representative information technology transactions include the outsourcing of IT infrastructure services and support, data center services, application development and maintenance, network management and support, help desk/call center services, and telecommunications services. Dan has represented established and emerging companies in many different industries, including insurance, banking, aerospace, defense contracting, electronic commerce, financial services, pharmaceuticals, and more.
Tom Saine is CIO and CISO at Spok, a role he’s held since 2008. Saine provides executive leadership for the company’s Information Technology and Wireless Messaging Network teams.
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.
