by Deanna L. Franco

On Friday, March 27, 2020, the IRS issued Notice 2020-20, adding gift and generation-skipping transfer (GST) tax returns to the list of taxes and tax returns to have their payment and filing deadlines postponed to July 15, 2020. Notice 2020-20 updates the guidance issued on March 20, 2020 in Notice 2020-18. As stated in the Notice, “This notice amplifies the relief provided in Notice 2020-18.”

Notice 2020-18 applied to income tax returns and payments (including self-employment tax) due on April 15, 2020 for tax year 2019, as well as to estimated income tax payments that were also due on April 15, 2020, for tax year 2020.[1]

The Notice states that for any taxpayer with a federal gift or GST tax payment due on April 15, 2020, or who is required to file IRS Form 709 United States Gift (and Generation Skipping Transfer] Tax Return (an “Affected Taxpayer”), the due date for making payments and for filing the Form is automatically postponed until July 15, 2020. The Notice provides that the relief is automatic and there is no need to file IRS Form 8892 Application for Automatic Extension of Time to File Form 709 and/or Payment of Gift/Generation Skipping Transfer Tax. As a result of the automatic postponement, there will be no interest, penalties and additions to tax for failure to file Form 709 or to pay federal gift or GST tax during the April 15, 2020 to July 15, 2020 period. However, interest, penalties, and additions to tax with respect to any postponed Form 709 and payments will begin to accrue on July 16, 2020.

The Notice is limited solely to gift and generation-skipping transfer (GST) tax returns and the payment of associated tax.

The filing of any federal estate tax return (IRS Form 706) are not, as of March 27, 2020, postponed.

Please contact either Jay Richardson or Deanna L. Franco, if you have any questions or would like to discuss estate, gift or generation-skipping transfer tax matters as they pertain to your situation.

[1] This is not the same for Oregon regarding estimated tax payments for 2020. Oregon has specifically held that estimated tax payment for 2020 remain due on April 15, 2020.