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.
Jonathan Traub is managing principal and tax policy group leader in Deloitte Tax LLP's Washington National Tax Office. He was previously staff director for the House Ways and Means Committee, where he was responsible for developing legislative policies and strategy on issues in the committee's jurisdiction, including taxes, health care and trade.
Ben Callaghan is the chief experience officer at digital healthcare solution Empara.
Guy Gage III, LPC, is the co-owner of PartnersCoach Inc., a coaching and consulting firm working exclusively with CPA firms. He equips managers and partners to lead change initiatives and improve employee engagement in their firm. Holding a license in counseling (WV-LPC), he uses his experience in human and organizational behavior to coach firm leaders to break through resistance and create motivational environments. He has consulted with and coached CPA professionals for over 25 years in the U.S. and Europe, emphasizing firm growth and career fulfillment. In addition, he worked in a four-office CPA firm for almost eight years, giving him an inside look at the challenges firm leaders face. Reach him at (304) 677.0296 or Guy@PartnersCoach.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.
