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.
David Roberson is the president of RoseRyan, a ZRG company based in Silicon Valley, providing tailored advisory expertise in the finance and accounting disciplines.
Rahul Nawab is senior vice president, analytics at EXL, a multinational data analytics and digital operations and solutions company. At EXL, he is responsible for business development, client engagement, and overall growth of the company's Insurance Analytics business. Nawab has co-founded several companies and held various senior management roles throughout his career, giving him a breadth of experience across various verticals. Nawab has also served as a mentor at Global Insurance Accelerator—a mentor-driven business accelerator designed to foster innovation in the insurance industry.
Brian Carey is senior director, insurance solutions for Equisoft.
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.
