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.
The International Federation of Accountants called on national leaders to stay focused on long-term progress alongside their immediate priorities for the coronavirus pandemic.
The COVID-19 pandemic has highlighted the need to have a business continuity and disaster recovery plan and a pandemic plan in place.
Randy Johnston is a shareholder in K2 Enterprises LLC and owner of Network Management Group Inc. Reach him at (620) 664-6000 or randyj@nmgi.com. William Thompson, CPA, RPLU, is president of CPA Mutual, a provider of professional liability insurance for CPA firms and consultant on risk management regarding professional services, employees and data security. Reach him at bthompson@cpamutual.com.
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.
