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.
Robert Crossley is Franklin Templeton's global head of industry and digital advisory services, providing advisory consulting and thought leadership on the future of the investment and wealth management industry, including strategic innovation, digital assets and industry trends. Rob's teams' research provides an in-depth perspective on how the future is changing, the dynamics underpinning it, and the strategic significance for firms today.
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Abhishek Lodha is a Director in the Public Finance team at Assured Guaranty, leading fintech strategy for the secondary markets team and pioneering initiatives at the intersection of secondary markets, credit, technology, and data. He has spent over a decade working across electronic trading, credit analytics, and the application of artificial intelligence in the public finance market. His experience spans fixed income, business development, and product development roles across both fintech startups and established financial institutions.
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.
