Treasury Extends Tax Payment Deadline Beyond April 15
On March 17, Treasury Secretary Steven Mnuchin announced changes to the tax payment deadline for individuals and corporations due to the COVID-19 outbreak. However, the tax filing deadline of April 15 remains unchanged at this time.
Corporations and individuals can defer tax payments originally due on April 15 for 90 days interest- and penalty-free. Individuals can defer payments of up to $1 million, and corporations can defer payments of up to $10 million. However, taxpayers must still file their tax returns or an extension by April 15.
The secretary’s announcement lacks many important details. Furthermore, the Internal Revenue Service has yet to provide formal written guidance. It is unknown at this time when the needed details will be provided. Taxpayers should proceed under the following basic assumptions until further notice:
- The payment extension applies to 2019 balance due payments only.
- Tax returns that are due April 15 should be filed or formally extended.
- Taxpayers who make quarterly estimated tax payments should still plan to pay their first quarter 2020 estimated tax payment by April 15.
Secretary Mnuchin also announced more immediate economic relief that would provide funds for Americans within two weeks, though details are forthcoming. We continue to monitor the situation and will provide details on additional tax guidance as well as any economic relief packages as new information becomes available.
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