United States

IRS issues relief for the gift and GST tax deadline

TAX ALERT  | 

The IRS issued Notice 2020-20 on March 27, 2020 postponing the due date for filing gift tax returns (Forms 709) previously due on April 15th to July 15th. The payment of gift tax and generation-skipping transfer tax is also postponed to July 15th. This notice amplifies the relief provided in Notice 2020-18, which postponed the deadline for income tax filings and income tax payments until July 15th. 

This relief is automatic and does not require the filing of Form 8892 (Application for Automatic Extension of Time to File Form 709 and/or Payment of Gift/Generation-Skipping Transfer Tax). If an extension beyond July 15th is necessary, the notice states that Form 8892 may be filed. The notice does not mention an automatic extension using Form 4868 (Application for Automatic Extension of Time to File U.S. Individual Income Tax Return), but it is presumed that the extension application for an individual return, filed by July 15th, will be sufficient to extend the gift and generation-skipping transfer tax return per the instructions to the Form 4868.

The notice also states the calculation of interest, penalty, or addition to tax for failure to file Form 709 or pay gift tax and generation-skipping transfer tax shown on the Form 709 will also be postponed by the notice. Any interest or penalties will begin to accrue on July 16, 2020.

Additional guidance is expected over the coming days.

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