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.
James McIntyre is the Chief Strategy Officer of Inclusive Prosperity Capital (IPC), a non-profit clean energy finance platform. Prior to IPC, James spent almost 20 years in the municipal finance industry as a banker, issuer, and technologist, most recently overseeing the $20+ billion affordable housing debt portfolio of the State of New York. James remains active in affordable housing work, now serving on the board of New York State HFA.
Jennifer Stein of Global Tax Network has more than 25 years of experience in expat and foreign national tax preparation and consulting. She joined GTN in 2011 and serves as managing director for GTN's Great Lakes region. She coaches clients to understand the complexities of sending employees across borders and helps them work through the many requirements of home and host reporting.
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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.
