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.
Seth Hanft is a senior associate at Porter Wright Morris & Arthur LLP. He works primarily in the area of employee benefits and executive compensation where he assists private and public companies, non-profit entities and governmental entities in all facets of employee benefit plan legal compliance, operation and administration.
Frank Paré is the 2018 president of the Financial Planning Association and president and founder of PF Wealth Management Group in Oakland, California.
Lisa Tierney, CLSC is a certified life strategies coach, marketing strategist and a consultant to the accounting profession. She is a frequent author, speaker and facilitator of workshops. She is a member of the CPA Leadership Institute's Leadership Panel and an active member of the International Coach Federation. She can be reached at (215) 277-5756 or Lisa@CPAMarketingConsultant.com, or visit her website at www.tierneycoaching-consulting.com.
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.
