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.
Patrick Goodwin is president of Strategic Resource Management, Inc., Memphis, Tenn. He can be reached at 901-681-0204 or pgoodwin@srmcorp.com.
Kevin Spencer is a partner at McDermott Will & Emery and edits the law firm's “Tax Controversy” blog. He represents clients in complicated tax disputes before the IRS at the IRS Appeals and Examination divisions. In addition to his tax controversy practice, Kevin has broad experience advising clients on various tax issues, including tax accounting, tax penalties, IRS procedures, reportable transactions and tax shelters.
Robin Greenhouse is a partner at the law firm McDermott Will & Emery in Washington, D.C. Robin represents businesses and individuals in resolving complex, large-dollar federal tax controversies. Over her 30-year career as a government and private practice tax litigator, she has argued more than 100 cases in federal courts at every level.
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.
