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.
Chris McMahon was Senior Editor for Insurance Networking News.
David Van Bruwaene is a purpose-driven serial entrepreneur, philosopher, and educator; a leader in consumer and business strategy for ethical technologies. He is the founder and CEO of FAIRLY, a governance, risk, and compliance solution built to help businesses accelerate responsible AI models to market. Through FAIRLY, Van Bruwaene is working to promote and protect human rights at a time of growing concern of AI model development. With academic roots in Cognitive Science and Philosophy at Cornell University, David has academic relationships at UC Berkeley, the University of Ottawa, the University of Waterloo, and the University of Guelph.
Stacy E. Dow is the national leader of financial consulting at RSM US LLP. She has over 25 years of experience providing audit, tax and financial advisory services. She has extensive experience with liquidity events and works closely with the management of middle market companies to assess internal controls and to assist with financial reporting needs. She supports both public and private companies in supporting their finance organizations to help solve technical challenges as well as identifying practical strategies for process improvements throughout the organization.
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.
