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As we all know by now, various types of income tax returns, including Individual, Corporate, Partnership and Estate/Gift have been automatically postponed until July 15th. Clarification has now come out with regards to the other various Estate/Gift Tax filings for Federal purposes.

Form 706, United States Estate (and Generation-Skipping Transfer(GST)) Tax Return, as well as Form 709, United States Gift (and GST) Tax Return originally due on or after April 1, 2020 and before July 15, 2020 are now due (along with any payment) on July 15, 2020.

For example, assume a deceased taxpayer’s Form 706 has a balance due of $500,000 and was originally due on April 14, 2020. Form 706, or an extension to file Form 706 (as well as the $500,000 payment) are now due on July 15, 2020. In addition, if a 6-month extension of time to file is requested, the extended due date is calculated from the original due date of the return. In this example, the extended due date of Form 706 would be October 14, 2020. Interest and penalties, if applicable, will begin to accrue on July 16, 2020.

Generally speaking, other Estate and Gift tax related items are also postponed, this includes Alternative Valuation Elections, portability elections, Form 8971 Information regarding beneficiaries acquiring property from a decedent (cost basis reporting), etc. See the attached IRS released FAQs here

Please feel free to reach out to your WG advisor if you have any questions or need further clarification.

Questions? Ask a WG Advisor