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.
Christian Hagen is a Chicago-based partner in global management consulting firm A.T. Kearney’s Digital Transformation Practice. He specializes in helping clients use information technology to increase efficiencies, improve customer relationships, and gain competitive advantage.
Steven Gortler is a Registered Municipal Advisor based in San Francisco. Steven has many years of public finance experience structuring, marketing and pricing a wide variety of bonds for California cities, redevelopment and successor agencies, counties, school districts and special districts. Previously, Steven was an investment banker with Piper Jaffray; a financial advisor with Kelling, Northcross & Nobriga, Leifer Capital, Caldwell Flores Winters and Wulff, Hansen & Co., a rating analyst with Standard & Poor's; and a tax analyst with the New York City Office of Management & Budget.
A technology strategist, David is vice president of strategy at harmon.ie, provider of the first user experience tools for the digital workplace built to deliver information the way the human brain works. David is also a PhD candidate in information management, exploring information overload experienced by mobile workers, and an international scholar for the Society for the History of Technology.
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.
