The IRS released Notice 2020-18 on March 20, which extended the filing deadline for all 2019 federal income tax returns from April 15, 2020 to July 15, 2020. In addition, the IRS has waived the assessment of all interest, penalties, and additional taxes related to these returns through July 15, 2020. Such interest, penalties, and additional failure-to-file taxes will begin to accrue on July 16, 2020. This relief applies to all federal income tax returns, including returns for individuals, estates, partnerships, associations, and corporations.
Likewise, the IRS released Notice 2020-20 on March 27, which extended the filing deadline for all 2019 federal gift tax returns (Form 709) from April 15, 2020 to July 15, 2020. A federal gift tax return is required if you made a gift to any individual, other than a spouse, or to an irrevocable trust in excess of $15,000 during 2019. The IRS has also waived the assessment of all interest, penalties, and additional failure-to file taxes related to these returns through July 15, 2020, which will again begin to accrue on July 16, 2020.
Finally, the IRS release Notice 2020-23 on April 9, which extended the filing deadline for federal estate tax returns (Form 706) due on or after April 1, 2020, and before July 15, 2020, to July 15, 2020. A federal estate tax return is required if a decedent passed away in 2019 and had an estate worth more than $11,400,000, or if the decedent’s surviving spouse desires to make an election to “port” the decedent’s unused federal estate tax exemption for use by the surviving spouse. This extension primarily affects returns (whether required or filed for portability election purposes) for decedents dying between July 1, 2019, and October 15, 2019, if no prior extension was requested, and decedents dying between January 1, 2019, and April 15, 2019, if a prior automatic extension was requested. The IRS has also waived the assessment of all interest, penalties, and additional failure-to file taxes related to these returns through July 15, 2020, which will again begin to accrue on July 16, 2020.
The relief above for federal income, gift, and estate taxes is automatic, meaning you do not need to file any additional forms or contact the IRS. You can also obtain an additional automatic extension for these returns to October 15, 2020 (excluding estate tax returns for which a prior extension was already requested), by filing the appropriate form no later than July 15, 2020. If you already filed a form to apply for an automatic extension for a federal income or gift tax return, the applicable filing deadline remains October 15, 2020. If you already filed a form to apply for an automatic extension for a federal estate return, you will not be eligible for an additional extension beyond July 15, 2020, unless good cause is shown.
The Estate/Wealth Planning attorneys at Dvorak Law Group have the knowledge and experience to efficiently assist our clients with their wealth transfer planning needs. Please contact Dvorak Law Group for specific questions and recommendations regarding your wealth transfer planning, including to confirm whether you are required to file a federal gift tax return for 2019.
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