Federal Gift Tax Returns and Payment Automatically Extended
Despite the IRS specifically addressing in guidance issued on March 24 that the income tax extensions would not apply to gift tax returns and payments, Treasury has now reversed itself with the following:
Notice 2020-20; Federal income tax filing and payment relief on account of Coronavirus Disease 2019 (COVID-19) emergency. This notice provides relief in addition to the relief provided in Notice 2020-18, issued on March 20, 2020. In this notice, the Treasury Department and IRS are providing relief to all taxpayers who have Federal gift (and generation-skipping transfer) tax returns and payments due on April 15, 2020. The April 15, 2020 deadline is postponed to July 15, 2020. Associated interest, additions to tax, and penalties for late filing or late payment will be suspended until July 15, 2020.
Notice 2020-20 will be in IRB 2020-16, dated April 13, 2020.
In these trying times, we are fully committed to protecting our clients' interests and well-being. Should you have any questions or concerns, please do not hesitate to reach out to the Tax, Estates & Business Practice Group of Morris James LLP.