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.
Justin Cooper leads Orrick's Finance Sector and is a member of the firm's Board. He also serves as co-leader of Orrick's Public Finance department and chair of the firm's nationally prominent housing finance group.
Zack Schuler is the Executive Chairman and Founder of NINJIO, a leading cybersecurity awareness training company. With over 1,000,000 viewers a month, NINJIO empowers employees at some of the world's largest organizations to protect themselves against cyberthreats and scams. Prior to NINJIO, Zack founded Cal Net Technology Group, an I.T. Consulting and Security firm in 1995. Zack grew Cal Net into one of the larger MSPs in Southern California before selling the company to a private equity firm in 2013.
Mary de Wet has about 25 years of experience in financial journalism. Before joining American Banker, she led the Dow Jones Newswires Americas team in covering corporate disclosures and analyzing news from Canada to Brazil. Her articles have appeared in The Wall Street Journal, MarketWatch and Barron's.
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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.
