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.
Burcu Bree Manay is founder and managing partner of Manay CPA. She serves on the board of the Georgia Chamber of Commerce and is a member of the Forbes Business Council. She is a CPA and Certified Tax Coach with about 25 years of professional accounting, financial planning, tax and business consultancy experience in various U.S. and international sectors.
Gurpreet Chaggar is an associate product marketing manager at Prophix. She joined the company in 2019 as an implementation consultant, where she developed a deep understanding of Prophix's solutions and the impact Prophix has on helping clients optimize business outcomes.
Heather Robison is a marketing manager, strategist and facilitator at Boomer Consulting Inc., where she works with accounting firm leaders to rethink how marketing and business development drive sustainable growth. She leads the Boomer Marketing and Business Development Circle, where she facilitates peer-driven conversations and surfaces patterns from top-performing firms.
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.
