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.
Ryland Costello is the Senior Manager of Channel Partnerships at DailyPay. DailyPay delivers the industry's leading on-demand pay solution with modern, insight-driven pay strategies that help America's leading employers to activate their workforce and build stronger relationships with their employees, so they feel more engaged, work harder, and stay longer. Ryland is a graduate of the University of Connecticut School of Business where he received his B.S. in marketing.
Geoffrey Crossan serves as VP/GM, Wisely by ADP for Employee Financial Solutions. Wisely provides ADP clients with a convenient and compliant method of electronic pay, and gives their employees access to flexible payment solutions and financial wellness tools. He graduated with a degree in Civil Engineering from the University of Pennsylvania and holds an MBA from Columbia Business School.
Wendy De La Rosa is an assistant professor of marketing at the University of Pennsylvania's Wharton School.
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.
