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.
Alan Moore is co-founder and CEO of the advisor support platform XYPN. He also founded AdvicePay, a platform for processing payments and overseeing compliance of fee-for-service financial planning.
Tim Laehn is a director at Denim, a mobile and social media advertising automation platform for financial services companies.
Anthony Pumphrey, CFA, ASA, is vice president of Valuation Research Corporation. He has over 10 years of experience performing business enterprise valuations, purchase price allocations, impairment analyses, and the valuation of claims within complex capital structures for public and private companies under IRC 409a, ASC 350, ASC 360, ASC 718, ASC 805, ASC 820, and ASC 852. Mr. Pumphrey has presented on financial reporting at the American Institute of CPAs' Forensic & Valuation Services Conference and has guest lectured on valuation topics at Drexel University. Mr. Pumphrey holds a bachelor of business administration (BBA) degree in finance and real estate from Temple University. He also holds the designations of chartered financial analyst (CFA) and accredited senior appraiser (ASA), issued by the CFA Institute and the American Society of Appraisers, respectively.
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.
