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.
Carl E. Sera is a chartered market technician (CMT) and the managing principal of Sera Capital Management, a fee-only registered investment advisor based in Annapolis, Maryland, specializing in tax-efficient real estate exit planning, 1031 exchanges, Delaware statutory trusts and 721 UPREIT structures. He has more than 19 years of experience in financial services.
J. Henning Buchholz is a strategic initiatives, transformation and M&A leader who supports global organizations in unlocking value through strategic transactions and enterprise change. As a principal with Deloitte Consulting's M&A practice and co-leader of the U.S. divestitures & separations group, he advises global life sciences, technology, and other organizations on reshaping portfolios, driving growth and unlocking operational value through complex transactions and enterprise transformations.
Erin DeHaven is a partner with Deloitte Tax LLP in the transaction & integration services practice. She assists clients in addressing their comprehensive tax responsibilities, including tax technical, departmental operations and business process considerations during corporate life events, such as mergers, acquisitions, divestitures and legal entity rationalizations. Her experience includes transaction planning, consolidated group transactions, carve-out tax accounting, continuing operations calculations and project management. She has more than 12 years of experience assisting multinational corporations with their federal, state and international tax compliance and tax planning considerations, including ASC 740 and related accounting matters.
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.
