COVID-19 relief for estate and gift

 A. The return and payment would be due on July 15, 2020. If the return is filed and all estate tax is paid before July 15, 2020, there will be no penalties or interest assessed.

A. It depends. If the period of time to make a qualified disclaimer expires on or after April 1, 2020, and before July 15, 2020, then a taxpayer has until July 15, 2020, to make a qualified disclaimer, provided however that the disclaimer must be timely and valid under state law. This relief is provided through Notice 2020-23’s incorporation of the relief provided in Rev. Proc. 2018-58.

A. Yes. The due date for Form 8971 and for furnishing Schedule A, Information Regarding Beneficiaries Acquiring Property from a Decedent, to beneficiaries is postponed as described below.

If Form 706 is timely filed or due during the 30-day period ending on April 1, 2020, then the due date for filing Form 8971 and furnishing Schedule A is postponed to July 15, 2020.

If the due date of Form 706 is postponed to July 15, 2020, and Form 706 is filed before June 15, 2020, then the due date for filing Form 8971 and furnishing Schedule A is postponed to July 15, 2020. 

If the due date of Form 706 is postponed to July 15, 2020, and Form 706 is not filed before June 15, 2020, then the due date for filing Form 8971 and furnishing Schedule A is the earlier of 30 days after filing or August 14, 2020. 

A. If the time for making a claim for refund expires on or after April 1, 2020, and before July 15, 2020, a taxpayer has until July 15, 2020 to make that claim for refund.

A. A portability election must be made on a timely filed return. If Form 706 is required to be filed on or after April 1, 2020, and before July 15, 2020, then the due date for making a portability election is postponed to July 15, 2020.

Additionally, estates without a filing requirement have two years from the decedent’s date of death to make a portability election if filed pursuant to Rev. Proc. 2017-34. If such two-year period expires on or after April 1, 2020, and before July 15, 2020, the date by which a portability election pursuant to Rev. Proc. 2017-34 must be made is postponed to July 15, 2020.

A. Any GST election or allocation made with respect to a 2019 transfer on Form 709 due on or after April 1, 2020, and before July 15, 2020, is timely (and, therefore, effective on the date of the transfer) if made on a Form 709 filed on or before July 15, 2020.

A. No. The rules for making late allocations of GST exemption are not changed by Notice 2020-18, Notice 2020-20, or Notice 2020-23. A late allocation of GST exemption made on or after April 1, 2020, and before July 15, 2020 (that is, an allocation of GST exemption to a transfer made before 2019) is effective on the date of filing. Therefore, the fair market value of the trust assets for the purposes of determining the trust’s inclusion ratio is the value on the date of allocation or (if so elected pursuant to § 26.2642-2(a)(2)) the value on the first day of the month in which the allocation was made.

A. No. Generally, an allocation of GST exemption to a 2019 transfer made on or before July 15, 2020, is considered timely and effective on the date of the transfer. A taxpayer may not elect, on a return filed on or before July 15, 2020, to treat an allocation to a 2019 transfer as a late allocation. Therefore, GST exemption must be allocated to the transfer based on its fair market value on the date of the transfer (and the valuation method under § 26.2642-2(a)(2) cannot be used).

 A. The due date for a Form 706 due on or after April 1, 2020, and before July 15, 2020, pursuant to a valid extension, is postponed to July 15, 2020. However, because Notice 2020-23 does not postpone a payment of tax that was due before April 1, 2020, interest will continue to accrue from the date payment was due (that is, the due date of the return without extension) until the date of payment. 

For instance, if Form 706 was due on November 15, 2019, and was extended to May 15, 2020, then the Form 706 can be filed timely on or before July 15, 2020. However, if the return is filed on July 15, 2020, and additional payment is required, then interest on the underpayment amount will be calculated from November 15, 2019 (including for the entire period between April 1, 2020 and July 15, 2020). 

A. If the one-year period after the due date of the Form 706 expires on or after April 1, 2020, and before July 15, 2020, then you have until July 15, 2020 to make the alternate valuation election. For instance, if the return was due (either with or without extension) on May 1, 2019, then you would have until July 15, 2020 (rather than May 1, 2020) to make an alternate valuation election. This relief is provided through Notice 2020-23’s incorporation of the relief provided in Rev. Proc. 2018-58.

A. Under Section 2032A(c)(7), a qualified heir has two years from the decedent’s death to commence a qualified use of farm property for which a special use valuation election was made under Section 2032A(a). If this two-year period expires on or after April 1, 2020, and before July 15, 2020, then the end of this two-year period is postponed to July 15, 2020. This relief is provided through Notice 2020-23’s incorporation of the relief provided in Rev. Proc. 2018-58.

A. Yes, if the 90-day period referred to in Section 2055(e)(3)(C)(iii) expires on or after April 1, 2020, and before July 15, 2020, then the end of this 90-day period is postponed to July 15, 2020. The 90-day period is based on the due date of the estate’s Form 706 or Form 1041 (as the case may be) as postponed by Notice 2020-23 (to the extent the Notice postpones the return’s due date). This relief is provided through Notice 2020-23’s incorporation of the relief provided in Rev. Proc. 2018-58.

A. Yes, if such three-year period ends on or after April 1, 2020, and before July 15, 2020, then the end of this three-year period is postponed to July 15, 2020. This relief is provided through Notice 2020-23’s incorporation of the relief provided in Rev. Proc. 2018-58.

A. The due date for Form 5227 originally due April 15, 2020, is postponed to July 15, 2020. This relief is provided through Notice 2020-23’s incorporation of the relief provided in Rev. Proc. 2018-58.

A. If the time to file a request for a 6-month extension for Form 706 expires on or after April 1, 2020, and before July 15, 2020, the extension request may be timely filed on or before July 15, 2020. However, the 6-month extension will be calculated from the original due date. For example, if Form 706 is due on May 1, 2020 and the 6-month extension request is filed on July 1, 2020, then the 6-month extension applies to the May 1, 2020 due date, extending the time to file Form 706 to November 1, 2020.