Treasury Secretary Steven Mnuchin announced on Tuesday, during a daily briefing on the Coronavirus that individual taxpayers may delay paying taxes owed to the federal government up to 90 days (making the due date for your tax payments July 15th). The three-month deferral is supposed to cover many pass-through entities and small businesses. Most importantly, any tax payments that are postponed will not be subject to interest and penalties.
According to Mnuchin, “If you owe a payment to the IRS, you can defer up to $1 million as an individual.” Corporations may be able to defer up to $10 million in payments.
To take advantage of this payment deferral period, federal income tax returns should still be filed by the April 15th tax deadline. However, an extension can be obtained as in the past, which would give individuals until October 15th to file their tax returns.
We will be working with our clients to determine the best course of action for their tax situations. We are continuing to monitor this announcement and will provide more details as they become available.
