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.
Michael Sprachman is director of exchange traded solutions for Devexperts, a leading developer of financial solutions for brokers and financial institutions servicing equities, options, mutual funds, fixed income and futures.
Prior to joining Devexperts, he was a product manager for Fidessa's sell-side U.S. trading platform and began his career as an equity trader.
Nate Lenz is CEO and co-founder of Concurrent.
Prior to launching Concurrent, he was vice president of succession planning and acquisitions at Raymond James Financial Services, leading a team that provided support to more than 4,000 independent financial advisors.
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.
