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.
Ian Vacin is co-founder and chief partnerships officer at Karbon and is co-author of Scale with Purpose: The Service Entrepreneur's Guide to Intentional Growth. He has nearly three decades of leadership experience in technology and accounting with Karbon, Xero and Intuit, and is passionate about helping accounting professionals be as successful as possible so they can better serve the small businesses they support.
Max Gokhman is deputy CIO for Franklin Templeton Investment Solutions, responsible for leading global investment research, including quantitative, fundamental and manager research teams. Previously, he was president and CIO of the startup asset manager AlphaTrAI and before that, head of asset allocation at Pacific Life Fund Advisors. Prior to Pacific Life, he was a portfolio manager with Mellon Capital's multiasset group and a founding member of Coefficient Global, a quantitative macro hedge fund.
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.
