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.
John B. Williams III is a partner in the Washington office of Buckley LLP. He provides enforcement and litigation counsel to financial services companies and individuals navigating internal investigations, government investigations, and complex civil litigation, with a particular emphasis on consumer finance matters and complex electronic discovery. He is focused on the compliance issues surrounding government-insured mortgages and other credit products.
Michael A. Rome is a partner in the Los Angeles office of Buckley LLP. He represents corporate and individual clients in a variety of litigation and government enforcement matters. His work includes complex commercial disputes related to mortgage-backed securities, indemnity disputes, and consumer class actions alleging unfair and deceptive trade practices.
Amanda R. Lawrence is a partner in the Washington office of Buckley LLP. She specializes in cybersecurity, privacy, information security and vendor risks. She also counsels clients on compliance with privacy and data-security laws and standards, as well as represents financial services clients in mortgage loan repurchase and indemnification claims related to residential mortgage-backed securities and consumer cases.
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.
