IRS Postpones Due Date for Filing and Payment of Federal Estate (and Generation-Skipping Transfer) Taxes, Expands Extension of Other Filing Deadlines

Related Practices

Attorneys & Professionals

The Internal Revenue Service (IRS) has announced that the due date for certain taxpayers filing Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, and/or making payments of federal estate and generation skipping transfer tax is automatically extended until July 15, 2020.  Ordinarily such filings and payments are due nine months after the date of death of a decedent.  If the due date for filing the estate tax return and/or paying estate tax falls on or after April 1, 2020 and before July 15, 2020 (the “postponement period”), Notice 2020-23 automatically extends the due date for filing and/or payment until July 15, 2020.  No interest or penalties will be imposed during the postponement period. 

If the original due date that is nine months after the decedent’s date of death falls during the postponement period, a taxpayer may file Form 4768 by July 15, 2020 in order to obtain an extension of time to file Form 706 to the date that is six months after the original nine month due date.  However, the payment of federal estate and generation-skipping tax will still be due by July 15, 2020.

Notice 2020-23 also broadly expands the relief provided in prior IRS Notices by extending the due date to July 15, 2020 for most filings, payments, and time-sensitive tax elections and actions that otherwise would be due during the postponement period.  This includes relief of the following:

Extension of these additional filings beyond July 15, 2020 does not extend the due date for any resulting payment due beyond July 15, 2020. 

Notice 2020-23 also extends the due date for certain federal government actions during the postponement period, including the due date for: assessing taxes, giving or making any notice or demand for payment of any tax, collecting tax, bringing suit, and allowing a refund or credit of any tax. 

The IRS previously announced that the due date for filing federal income tax returns and making federal income tax payments for the 2019 taxable year for individuals, trusts, estates, partnerships, associations, companies, and corporations was extended from April 15, 2020 to July 15, 2020.  The IRS also previously announced that the due date for filing Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, and paying federal gift and generation-skipping transfer tax for the 2019 taxable year is automatically postponed from April 15, 2020 to July 15, 2020.

If you have questions about your tax filing and payment deadlines, or the scope of this expanded relief, please contact your Vorys attorney.