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.
Iralma Pozo is an independent consultant with more than 15 years of financial expertise, and an adjunct lecturer in accounting at John Jay College in New York. She is an active member of the New York State Society of CPAs, currently serving on the statewide board and various committees. Most of her experience is in the not-for-profit sector, having held financial leadership and public accounting related roles. She has also worked for the Internal Revenue Service, and has experience working with entrepreneurs, small businesses, and the real estate, insurance and entertainment sectors. She worked as a director of finance and consultant at various nonprofit organizations.
Jakob Wilhelmus is associate director of the Milken Institute’s international finance and macroeconomics team.
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.
