On March 27, 2020 the IRS released Notice 2020-20 postponing the April 15, 2020 due date for the filing of a gift tax return and the payment of gift tax or generation-skipping transfer tax to July 15, 2020. This Notice amplifies Notice 2020-18 which postpones the deadline for the filing and payment of income tax due April 15, 2020 to July 15, 2020.
The Notice applies to any “person” covered under Notice 2020-18 affected by the COVID-19 emergency (an “Affected Taxpayer”).
For an Affected Taxpayer, the due date for filing Form 709 (United States Gift (and Generation-Skipping Transfer) Tax Return and making payment of federal gift tax and generation-skipping transfer tax due April 15, 2020 is automatically postponed to July 15, 2020. No interest or penalties will be imposed during the postponement period. The postponement is automatic. No automatic extension of time to file (Form 8892) is required to be filed. However, an Affected Taxpayer may choose to file Form 8892 by July 15, 2020 to obtain an extension of time to file Form 709 to October 15, 2020. Note that any gift or generation-skipping transfer tax will nevertheless be due by July 15, 2020.
If you have any questions regarding the issues raised in this client alert, please contact your Private Wealth counsel at Smith, Gambrell & Russell, LLP.