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.
Ozgur B. Kan is a Managing Director and the leader of Credit Analytics Practice in Berkeley Research Group.
Jeremy R. Newell is executive managing director, head of regulatory affairs and general counsel of The Clearing House Association.
André Christ is co-founder and co-CEO of LeanIX. André's passion lies in enabling organizations and their employees to build better products by moving to a modern IT architecture. Before André co-founded LeanIX, a software-as-a-service vendor, he gained extensive experience as a management consultant at the world’s largest logistics company. In this role, he advised CIOs and IT leaders on strategic topics at the interface of business and IT. Projects included the execution of a global IT complexity reduction program and the definition of an IT service and cost charging model for their world-wide data centers. During his studies of information science in Germany and France, he built modern software architectures for both startups and large enterprises. He is a global thought leader and has spoken at several high-influence industry events including Gartner’s EA Summit, Hamburger IT Strategy Days and Rethink! IT.
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.
