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.
Anila Lahiri is the chief operating officer at EIN Search, a provider of compliance data and solutions. She has extensive expertise in navigating the complex landscape of compliance and her keen insights into data-driven strategies.
Alex Bouaziz is the co-founder and CEO of Deel, the all-in-one HR platform for global teams. Founded in 2019, Deel's technology helps companies simplify every aspect of managing an international workforce, from culture and onboarding, to local payroll and compliance. In just under four years, the company has grown to 3000 team members worldwide in over 100 different countries and raised over $600 million in funding. It has 18,000-plus customers, including Shopify, Nike, and Cloudflare.
Linda Jeng is a visiting scholar on financial technology at Georgetown University Law Center's Institute of International Economic Law.
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.
