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Extension of time to file returns, make payments of federal gift and generation-skipping transfer taxes (COVID-19)

Extension of time to file returns, federal gift

The IRS today release an advance version of Notice 2020-20 that provides relief to taxpayers who have federal gift (and generation-skipping transfer) tax returns and payments due on April 15, 2020, in response to the coronavirus (COVID-19) pandemic. The April 15, 2020 deadline is postponed to July 15, 2020.

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Notice 2020-18 provides that under the president’s March 13, 2020 “Emergency Declaration” relating to the coronavirus (COVID-19) pandemic, relief from federal income tax filing and payment deadlines is being provided to U.S. taxpayers who have been adversely affected by the COVID-19 emergency under the authority of section 7508A(a). Read TaxNewsFlash

Notice 2020-20 [PDF 15 KB] amplifies the relief provided by Notice 2020-18, and provides that a person with a federal gift tax or generation-skipping transfer tax payment due or the requirement to file Form 709, United States Gift and Generation-Skipping Transfer Tax Return on April 15, 2020, is also affected by the COVID-19 emergency and is an “Affected Taxpayer.”

For an Affected Taxpayer, the due date for filing Forms 709 and making payments of federal gift and generation-skipping transfer tax due April 15, 2020, is automatically postponed to July 15, 2020.

The relief is automatic; there is no requirement to file Form 8892, Application for Automatic Extension of Time to File Form 709 and/or Payment of Gift/Generation-Skipping Transfer Tax, to obtain the benefit of this filing and payment postponement until July 15, 2020.

An Affected Taxpayer may choose to file Form 8892 by July 15, 2020, to obtain an extension to file Form 709 by October 15, 2020 (any federal gift and generation-skipping transfer tax payments postponed by Notice 2020-20will still be due on July 15, 2020).

As a result of the postponement of the due date for filing Forms 709 and making federal gift and generation-skipping transfer tax payments, the period beginning on April 15, 2020, and ending on July 15, 2020, will be disregarded in the calculation of any interest, penalty, or addition to tax for failure to file a Form 709 or to pay federal gift and generation-skipping transfer taxes shown on that form and postponed by this notice. Interest, penalties, and additions to tax with respect to such postponed Forms 709 and payments will begin to accrue on July 16, 2020.

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