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.
Darius Cooper is a software architect with X by 2, a technology consultancy specializing in application and data architecture for the insurance industry.
Ed Young is a senior director at Moody’s Analytics. In his role he works to meet customer needs with capabilities for credit risk quantification, capital planning, model risk management and IFS 9/CECL compliant allowance processes. Prior to joining Moody’s Analytics, Ed spent ten years at the Federal Reserve working on supervisory initiatives for capital planning, liquidity planning and model risk management. Earlier in his career he gained experience in balance sheet management working at a large regional bank.
Ashley Slisz is an associate in the law firm Withers Bergman's private client and tax team. She focuses on tax and estate planning for high net worth individuals and their families.
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.
