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.
Warren Zafrin is a leader of the risk advisory group at accounting, audit and consulting firm UHY Advisors. He has over 25 years of capital markets and technology strategy experience. Over the course of his career, Mr. Zafrin has supported many of the largest companies in the world and has managed project teams across the US, Canada, Europe, and Asia.
Alex Klein, CPA, is a solution consultant at LeaseAccelerator. Alex works closely with partners at Genpact, RGP, PwC and EY to design solutions for mutual clients. Prior to joining LeaseAccelerator, Alex held finance and accounting leadership roles at various technology and telecommunications firms including Eloqua, Sprint Nextel, and MCI. His experience in vice president, controller, and director-level roles has provided him with a diverse range of experience managing every aspect of finance organizations from accounting and cash management to budgeting and financial planning. Additionally, Alex has extensive financial systems experience implementing numerous ERP, general ledger, accounts payable, and financial reporting systems.
Brad Campbell is a partner at Drinker Biddle, where he focuses on employer-sponsored retirement plans.
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.
