The relief that the IRS is allowing as a result of the COVID-19 pandemic has been expanded yet again. The IRS released Notice 2020-23 on April 9, 2020, which postpones until July 15, 2020 the filing of many federal tax returns and the payment of taxes that had been due on or after April 1, 2020 and before July 15, 2020. The Notice affects filings and payments of the following federal income taxes for trusts and estates, as well as estate, gift, and generation-skipping transfer tax:
- Estate and trust income tax payments and return filings on Form 1041, U.S. Income Tax Return for Estates and Trusts, 1041-N and 1041-QFT;
- Estate and generation-skipping transfer tax payments and return filings on Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, 706-NA, 706-A, 706-QDT, 706-GS(T), 706-GS(D) and 706-GS(D-1);
- Form 8971, Information Regarding Beneficiaries Acquiring Property from a Decedent, and any supplemental Form 8971;
- Gift and generation-skipping transfer tax payments and return filings on Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, that are due on the date an estate is required to file Form 706 or Form 706-NA; and
- Estate tax payments of principal or interest due as a result of an election made under IRC Sections 6166, 6161, or 6163 and annual recertification requirements under Section 6166.
The postponements granted in Notice 2020-23 are automatic and do not require the filing of an extension request.
Taxpayers who need additional time to file their Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, may file a Form 4768, Application for Extension of Time to File a Return and/or Pay U.S. Estate (and Generation-Skipping Transfer) Taxes. Taxpayers who need additional time to file their Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, may file a Form 8892, Application for Automatic Extension of Time to File Form 709 and/or Payment of Gift/Generation-Skipping Transfer Tax, by July 15, 2020, to receive an extension of time to file until October 15, 2020.
No extension may be obtained for the payment of any estate taxes, gift taxes, or generation-skipping taxes that are due after July 15, 2020, and any taxes remaining unpaid after that date may be subject to interest and penalties.
A copy of Notice 2020-23 may be found here.