On March 20, 2020, the Treasury Department announced the 2019 tax filing deadline has been extended to July 15, 2020. This move is in recognition of the hardship faced by many as a result of restrictions caused by the COVID-19 pandemic.
This includes an extension of the due date for filing Forms 709 (United States Gift and Generation-Skipping Transfer Tax Return) to July 15, 2020 and making payments of Federal gift and generation-skipping transfer tax. There is no need to file an extension to benefit from this extended deadline. However, a taxpayer may choose to file an extension (Form 8892) by 7/15/2020 to obtain an extension to file Form 709 by 10/15/2020. Note that any federal gift and generation skipping transfer tax payments postponed until 7/15/2020 will still be due on 7/15/2020.
No interest, penalty or addition to tax for failure to file will be accrued from 4/16/2020 until 7/15/2020. Interest, penalties, and additions to tax with respect to such postponed Forms 709 and payments will begin to accrue on July 16, 2020.
Treasury Secretary Steven Mnuchin, in his announcement, said, “All taxpayers and businesses will have this additional time to file and make payments without interest or penalties.”
Secretary Mnuchin encouraged those who can file by April 15 to do so, especially if they are eligible for refunds, since the money will help those who are facing financial constraints because of COVID-19.
Smith & Howard is working full-time and ready to move forward with preparing and filing your tax returns. However, we understand that given the circumstances, this may not be feasible or desirable for many.
We stand ready to help and advise you in any way necessary. Please reach out to us.