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.
Oussama El-Hilali serves as the CTO of Arcserve and is responsible for setting the global product strategy, and managing the development and product management teams. He has nearly 25 years of IT and R&D experience driving and achieving product strategy and roadmaps, acquisition of new technology, and developing strategic business partnerships in both Fortune 100 and emerging companies. Keep up with him and Arcserve by following the company’s Twitter page.
Ian Lampl is the CEO and co-founder of LoanStreet.
John Blake, CPA, MBA, is a partner with the accounting firm Klatzkin & Co. LLP, specializing in taxation and business consulting, and providing comprehensive financial management to small businesses and entrepreneurs in the commercial real estate and construction industry.
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.
