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.
Adam Famularo is chief executive officer at erwin, Inc., a data management firm.
Paul Strid is founding principal at Concentus Wealth Advisors in King of Prussia, Pennsylvania.
Donald Light is the Director of Celent's Americas Property/Casualty Insurance Practice. His coverage areas include: technology and business strategy, transformative technologies such as digital strategy and the Internet of Things, new business and underwriting, policy administration, claims, M&A due diligence.His recent consulting work includes: developing a strategic IT plan for a specialty insurer, vendor selection advisory work for rating, policy administration, and claims; a build vs. buy analysis for core systems; and several due diligence projects for acquisitions.Mr. Light is widely quoted in the press and media, including The Wall Street Journal, The New York Times, Financial Times, The Economist, NBC and CBS Evening News, CNBC, National Public Radio. Heis a frequent presenter at industry conferences including those sponsored by ACORD, LOMA and IASA.Prior to joining Celent, Mr. Light was an insurance subject matter expert with Sapient and for his own firm Donald Light Consulting, where he advised senior managers at major insurers and other financial institutions. He has also held a senior research position in Allstate's Research and PlanningCenter. Light has a B.A. cum laude in economics from PrincetonUniversity, and an M.B.A. from the University of California, Berkeley.
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.
