2020 Gift Tax Deadlines Extended Due to COVID-19 Pandemic

March 28, 2020Alerts

IRS Notice 2020-18 postponed the Federal income tax filing and payment due date from April 15, 2020 to July 15, 2020, but did not affect due dates in connection with the Federal gift tax.

On March 27, 2020, the IRS released Notice 2020-20, which amplifies Notice 2018-20 and addresses the Federal gift tax.

Pursuant to the Notice:

  • Any 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 considered an “Affected Taxpayer.”
  • For an Affected Taxpayer, the due date for filing Form 709 is now July 15, 2020.
  • For an Affected Taxpayer, the due date for payment of gift tax otherwise due April 15, 2020 is now July 15, 2020.
  • The postponement to July 15 is automatic; no extension (Form 8892) is required to be filed.
    • However, if a further filing extension to October 15 is desired, then Form 8892 should be filed on or before July 15.
  • No further payment extensions are currently available.
  • Interest, penalties, and additions to tax with respect to postponed Forms 709 and payments will begin to accrue on July 16, 2020.

The information above is current as of March 27, 2020.