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.
Eric Glass is a municipal portfolio manager and impact investor at AllianceBernstein.
Stefanie Coleman is an Australian, New York-based, principal in the Ernst & Young LLP People Advisory Services practice who focuses on banking and capital markets. She has advised the world’s leading banks on a broad range of workforce strategy issues across the US, Australia, Middle East, Asia and the UK. In 2019, she was recognized by Workforce Magazine as a Workforce Game Changer.
Phil Dunkelberger is CEO of Nok Nok Labs.
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.
