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April 2, 2020

Deadline Extended for Filing Gift Tax and Generation Skipping Transfer Tax

Posted by COVID-19 Rapid Response Team

July 15, 2020 is now the deadline to file Gift Tax and Generation Skipping Transfer Tax Returns for 2019.

Background

  • On March 27, Treasury issued Notice 2020-20, which provides an automatic extension of time until July 15, 2020, to file 2019 Gift Tax and Generation Skipping Transfer (GST) Tax Returns (Form 709) and an extension of time until July 15, 2020, to pay gift tax or generation skipping transfer tax that is traditionally due on April 15, 2020.
  • Treasury previously issued Notice 2020-18, which creates an automatic extension of time to file and pay income tax for tax returns that are due April 15.
  • Notice 2020-18 did not extend the time for filing gift tax returns or for paying any gift tax due.

Who is impacted?

  • Every individual who has made taxable gifts in 2019 has been granted an automatic extension of time until July 15, 2020, to file Form 709 and pay any tax associated with 2019 Form 709.
  • Every individual who received a taxable distribution from a GST trust and is required to pay GST tax receives an automatic extension of time until July 15, 2020, to pay the GST tax due for 2019. The notice does not extend the time to file Form 706-GS(D), which is due April 15, 2020.
  • Every fiduciary responsible for a GST trust that experienced a taxable termination and is required to pay GST tax on April 15, 2020, receives an automatic extension of time until July 15, 2020, to pay the GST tax due for 2019. The notice does not extend the time to file Form 706-GS(T), which is due April 15, 2020.

What should you do if you need to extend the date for filing these tax returns?

  • The filing date for Form 709 is automatically extended until July 15, 2020. In order to extend the filing date until October 15, 2020, the taxpayer will receive an automatic extension of time to file Form 709 if they file Form 4868 to extend the filing due date for form 1040.
  • If the taxpayer is not extending the time to file Form 1040, they must file Form 8892 on or before July 15, 2020, to receive an automatic extension of time until October 15, 2020, to file Form 709.
  • If a payment of gift tax or GST tax is due on July 15, 2020, and the taxpayer is requesting an extension of time to file until October 15, 2020, then they must submit payment of the tax associated with Form 709 using Form 8892-V.
  • Taxpayers wishing to extend the filing date for Form 706-GS(D) or 706-GS(T) should file Form 7004 on or before April 15, 2020, using Form Code 01 for 706-GS(D) and Form Code 02 for Form 706-GS(T).
  • Treasury has not provided guidance regarding payments of GST tax that are not associated with Form 709 and become due on July 15, 2020, for returns that are extended until October 15, 2020.

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We’re closely monitoring the hour-by-hour changes, and we will send out updates as they become available. Reach out to our experts if you need further information on this topic.

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