COVID-19 Filing/Payment Extensions for Estate and Trust Tax Filings.

Various tax filing and payment deadlines have been extended as a result of the Covid-19 Crisis.  The following are the deadlines that apply to our Estate and Trust Group clients.

INHERITANCE TAX RETURNS

INHERITANCE TAX RETURN FILING AND PAYMENT DEADLINES HAVE NOT BEEN EXTENDED. Payments can be made and Inheritance Tax Returns can be filed by U.S. mail.  The postmark will be considered the filing date and, according to the Pennsylvania Department of Revenue’s website https://www.revenue.pa.gov/Pages/COVID19.aspx, any Inheritance Tax Return filed or Inheritance Tax payment made while the Register of Wills Office in your County was closed will be treated as having been filed or paid on March 12, 2020.  No penalties or interest will be assessed, but the Returns and Payments do have to be mailed and have a postmark within the time the County Register of Wills Office was closed.

ESTATE AND TRUST FIDUCIARY TAX RETURNS

The IRS has extended the filing deadline for Estate and Trust Tax Returns by 90 days to July 15th. This does not mean that there is any need to wait on filing these documents. We are happy to work with you at your convenience to complete these returns.

  1. We can apply for an extension on top of the general extension.
  2. We can prepare all 1041s and tax documents and email them to you for review.
  3. We can lead you through the electronic signature process and then E-file your returns.

GIFT TAX RETURNS

The filing deadline for gift tax returns has now been extended. Even before this newly announced extension, we were prepared to work with you remotely on these filings so that all documents are submitted, on time, by April 15th.  Now that deadline is extended to July 15, 2020.

  1. We can apply for extensions as usual.
  2. We can prepare all returns as needed and send them to you for review.
  3. We can facilitate the signing of these documents. Gift tax returns require “wet” (pen on paper) signatures so the documents will have to be mailed back and forth – or emailed for signing and then mailed back to us for filing. We are more than happy to review the documents with you over the phone or through video conference to ensure proper signing and execution.

IRS OPERATIONS LIMITED 

Please note, that due to Covid-19 the IRS is currently limiting their operations. They are not available for any in-person meetings, and all telephone, email, and letter correspondence is limited and may not receive a prompt reply if any. Generally, the IRS is limiting its functionality to the critical operations of accepting returns and sending refunds.

Be advised however, the IRS is still working to resolve ongoing litigation and continues to work cases where the statute of limitations period is ending. To this end the IRS has advised that the Office of the Chief Counsel, the Independent Office of Appeals, and the Taxpayer Advocate Service (TAS) all remain open for telephone conference (Note that the TAS can only receive calls at their local phone numbers not the toll-free centralized number).

For more information please see: https://www.irs.gov/newsroom/irs-operations-during-covid-19-mission-critical-functions-continue

We understand that tax issues are stressful under normal conditions and are only exacerbated by the current climate. We want to assure you that, even now, we are available to assist you in your tax matters to the extent possible during this crisis.

Stay safe and healthy.