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.
Americans will start to receive stimulus payments this week, a centerpiece of the $2.2 trillion rescue package meant to provide a buffer against the coronavirus pandemic that’s shuttered much of the U.S. economy.
Katherine Doty Hanniford is a senior associate at Alston & Bird LLP in Washington, D.C., on the firm’s Technology & Privacy and Cybersecurity Preparedness & Response teams. She focuses her practice on cybersecurity and privacy compliance and enforcement.
Tim Foley is counsel at Alston & Bird LLP in Washington, D.C., in the firm’s Financial Services & Products Group. He advises broker-dealers and other financial institutions in regulatory compliance and enforcement matters involving the SEC, FINRA, self-regulatory (SRO) agencies and state and foreign regulatory agencies.
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.
