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.
Jill C. McNally, JD, LL.M., is an editor with Checkpoint within Thomson Reuters Tax & Accounting. Before joining Thomson Reuters, Jill was a Deputy Attorney General for the State of New Jersey representing the New Jersey Division of Taxation in all phases of litigation and provided counsel to state agencies involving tax matters. Jill received her B.A. and M.A. from John Jay College of Criminal Justice, summa cum laude, her J.D. from New York Law School, cum laude, and an Executive LL.M. from Georgetown University. Jill is admitted to the State Bars of New York and New Jersey.
Sarah Horn, M.Acc., J.D., is an editor with Checkpoint Catalyst within Thomson Reuters Tax & Accounting. Before joining Thomson Reuters, Sarah was a tax attorney at ExxonMobil, where her work included a variety of state and federal tax matters. Sarah received her B.A. and B.S. from Southern Methodist University, summa cum laude, her Master of Accounting from The Ohio State University Fisher College of Business, and her J.D. from The Ohio State University Moritz College of Law, cum laude. Sarah is admitted to the State Bar of Texas.
Dr. Louise Beaumont advises Publicis.Sapient and their clients on the open future. Beaumont co-chairs techUK’s open banking and payments working group, making the case for successful implementation of open banking, and she is also a member of the New Payments System Operator’s End User Advisory Council, advising on fintech. She can be reached on Twitter @LouiseHBeaumont.
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.
