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 Public Company Accounting Oversight Board is giving firms a pause until May 11, given the difficulties businesses are facing from COVID-19.
The funds will be in addition to the $160 million from the Emergency Reserve Fund that the board released March 12.
Tim Ryan is U.S. chair and senior partner of PwC. Previously, he served as vice chair responsible for the firm’s strategy and stakeholder relationships including investor relations, regulatory affairs, public policy, corporate responsibility and human capital. With nearly three decades of diversified experience serving clients in the financial services industry in the U.S. and internationally, he also previously led PwC's Assurance practice and before that, led PwC's U.S. Financial Services practice and PwC's Consumer Finance Group. In 2017, he worked with a group of CEOs to launch The CEO Action for Diversity & Inclusion — the largest ever CEO-driven business commitment to advance diversity and inclusion in the workplace.
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.
