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.
Patricia Pechter is the chief medical officer with HealthJoy.
Jack Castonguay, Ph.D., CPA, is vice president of strategic content development – accounting, finance, and exam prep, at Knowfully Learning Group. He holds a BBA in accounting and a Master of Science in accounting from James Madison University, and received his Ph.D. in accounting from the University of Tennessee. He began his career in public accounting with a Big Four accounting firm auditing manufacturing and financial services clients, and has taught financial accounting, auditing, and research seminars at the graduate and undergraduate levels and is currently an assistant professor at Hofstra University.
As the time comes for businesses to apply for PPP loan forgiveness, CPAs can provide vital assistance to ensure success for their clients.
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.
