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.
Kyle Wissel is a principal at Mazars USA. He has more than 20 years of experience delivering advisory, tax planning, and consulting services to real estate companies, closely held businesses and high-net-worth individuals. He assists real estate owners, operators and developers in structuring acquisitions, advising them on existing business operations, and creating solutions to minimize tax liabilities. He also has an extensive background in individuals’ income, partnership, corporation, estate, gift and fiduciary tax returns, including guidance on domestic and international income and transfer tax planning, and investment and financial planning strategies.
James Mirfin is global head of digital identity and fraud solutions at Refinitiv.
Dan Johnson is an assistant professor for the College for Financial Planning and a part-time instructor for Kaplan Professional and Boston University. He resides in Chicago, IL.
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.
