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IRS Updates Guidance on Gift Tax Filings and Payments

Naya Pearlman, J.D., LL.M.

3.30.20 | Client Alert – COVID-19 Update

On March 27, 2020, the IRS released Notice 2020-20, expanding the previous Notice 2020-18 issued on March 18, 2020.  The new Notice extends both the due date for filing Forms 709 (U.S. Gift and Generation-Skipping Transfer Tax Returns) and the due date for making payments of Federal gift and/or generation-skipping transfer tax (ordinarily due on April 15, 2020) to July 15, 2020.

This relief is automatic and there is no longer a requirement to file an extension to delay the filing and payment until July 15, 2020.  As a result, the period from April 15, 2020 through July 15, 2020 will be disregarded in the calculation of any interest, penalty, or addition to tax for the failure to file a Form 709 or to pay Federal gift and generation-skipping transfer taxes.

For more information, please see Notice 2020-20 or contact your Berdon Advisor.