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.
Kim Muhota is Vice President in the Financial Services practice of SSA & Company. He is an executive with more than 20 years of experience in the Insurance, Private Equity, Payments, FinTech, Banking, Technology, and Business Services industries. He has demonstrated capabilities in working with C-Suite executives and line managers to drive actionable solutions rooted in deep analytics, and solving complex business challenges, and can be reached at kmuhota@ssaandco.com
John Rodgers is COO & Managing Partner, SSA & Company. He guides day-to-day operations, sets and steers SSA & Company’s business strategy, and oversees the Financial Services, Insurance, EMEA, and Healthcare practices. John has significant financial services operating and management experience with Aetna Life & Casualty and Cigna and has multiple insurance-related designations, including CPCU, RPLU, ARM, and AIS. He can be reached at jrodgers@ssaandco.com
David Schimel is a senior research scientist at the NASA Jet Propulsion Labratory, and is the chairman of Entelligent.
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.
