Any person owing federal gift tax or generation-skipping transfer tax on April 15 will now have until July 15 to make that payment without interest or penalties.
The IRS, in Notice 2020-20 (pdf), released on Friday, March 27, announced that individuals will have three more months to report taxable gifts and generation-skipping transfer (GST) tax events. This notice is the latest in a series of tax relief measures from the IRS to address the COVID-19 pandemic.
The due date for filing Form 709, the form used to report taxable gifts and GST transfers, and to allocate use of a person’s lifetime GST exemption, has also been extended to July 15. The notice adds that interest, penalties, and additions to tax with respect to postponed Forms 709 will begin to accrue on July 16, 2020.
The relief under the notice is automatic, so taxpayers are not required to file any application for an extension of time to file a Form 709 or pay the gift or GST tax. The IRS notes, however, that a taxpayer may file an application for an extension by July 15 to obtain a further extension until October 15 to file the Form 709.
This relief provides the same extension already given to individuals and businesses to file and pay their federal income taxes.
Read more legal updates on COVID-19 from Woods Rogers attorneys.