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.
Alexandra Steinberg Barrage is a partner in the banking and financial services group at Davis Wright Tremaine LLP. Ms. Barrage served as associate director of policy in the FDIC’s complex institution supervision and resolution division.
Nicole G. Iannarone is an Assistant Professor of Law at Drexel University Thomas R. Kline School of Law.
Dan Gertrudes is CEO and co-founder of GrowthLab, a Finance-as-a-Service (FaaS) company that serves founders and management teams with financial planning, accounting, and CFO support. GrowthLab specializes in helping startups, emerging growth companies, and companies in turnaround mode by providing leadership and execution with their financial management, accounting, and strategic planning functions.
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.
