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.
Rachel Koning Beals has covered investing, financial markets and banking for nearly three decades, publishing articles, video interviews and podcasts for MarketWatch, Barron's and industry trade publications.
Joseph Perello is the founder and CEO of Props, a performance-based creator marketing platform. He previously served as chief marketing officer of New York City, appointed by Mayor Michael Bloomberg, and as vice president of the New York Yankees.
Andrius Tamosiunas leads TMF Group's transfer pricing and Pillar Two services. He brings over a decade of experience across the full spectrum of transfer pricing, including structuring, compliance, benchmarking and risk assessment. He has overseen numerous global transfer pricing documentation projects and has a strong track record in analysing complex cross-border intercompany transactions, including operational and financial transactions, restructurings, and IP licensing. He also supports multinational companies with a centrally coordinated approach to meeting their Pillar Two tax reporting obligations efficiently and accurately across multiple jurisdictions.
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.
