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.
Kate Laminack is a model risk management and validation analyst II at Regions Bank. The opinions expressed in this article are statements of the author’s opinion, are intended only for informational purposes, and are not formal opinions of, nor binding on Regions Bank, its parent company, Regions Financial Corp. and their subsidiaries, and any representation to the contrary is expressly disclaimed.
Tessa Breslin is managing director, Americas at YSC Consulting, an independent consultancy that helps organizations understand if they have the leadership needed to achieve their future strategies. Breslin specializes in individual assessment along with development and coaching of high-potential leaders, especially women.
Paolo Sironi is an author on economics, finance and technology. He is elected member of IBM Industry Academy and mentors top managers on business model transformation in the digital era.
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.
