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.
Ciaran McMullan is the former president and CEO of Suncrest Bank, which sold to Citizens Business Bank in 2022 and currently advises banks and fintechs.
Edmond Martin is the founder of Sage Investigations, located in Austin, Texas. He and his team of former IRS criminal investigators, CPAs and former FBI investigators have 50 years of combined experience in forensic accounting, financial investigations, litigation support and income tax defense.
Sid Upadhyay is the CEO and co-founder of WizeHire, a leading hiring platform helping small businesses grow with a better way to hire. Prior to founding WizeHire, Sid and WizeHire co-founder Jay Niblick developed personality assessments and technology for Fortune 500 companies.
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.
