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.
Joel Sinkin is the president and Terrence Putney, CPA, is the CEO of Transition Advisors LLC, which consults on owner transition in accounting practices nationally, including mergers & acquisitions, succession planning, and structuring owner agreements. Reach them at jsinkin@transitionadvisors.com and tputney@transitionadvisors.com, or (866) 279-8550.
Al Anderson, CPA, has been a global leader in accounting and assurance advancement for more than 30 years. Over the course of his career, he has been named to Accounting Today’s Top 100 Most Influential People a number of times, most recently in 2017, 2018 and 2019. As president and founder of Account-ability Plus, LLC, he has worked directly with auditors and firms for over 25 years to transform their operations for auditing in the future, achieve efficiency and effectiveness, and surpass client expectations. He is also a nationally recognized consultant, educator and speaker, and guides his clients and their staff through uniquely designed programs and assessments with a future-focused, reality-based approach. Having led innovation for the profession as a firm partner, director, and AICPA executive, Anderson continues to advance insight and dedicate himself to driving accounting firm excellence. He recently led the AICPA/ Rutgers Data Analytics initiative and served as advisor to the AICPA and their Audit of the Future initiatives.
Patrick Donovan is a senior vice president at Bright Horizons, the nation’s largest provider of education benefits.
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.
