Dear clients and friends,
In a press conference earlier today, Treasury Secretary Steven Mnuchin announced that individuals and corporations can delay their tax payments for 90 days due to the coronavirus pandemic.
Individuals can defer up to $1 million in payments for 90 days from the April 15 deadline. Corporations can defer up to $10 million in payments for 90 days. Delayed payments will not be subject to interest or penalty.
There is no special filing required to obtain this automatic payment extension. The IRS will simply not assess penalties or interest during the 90 day extension period. As of this writing, the IRS had not yet issued formal guidance on the policy. Mnuchin's announcement did not delay the April 15 filing deadline.
Guidance is still forthcoming on several related matters including:
- Will extensions still be required to be filed by April 15?
- Will this payment deferral also apply to the quarterly estimate for 2020 due April 15?
- Which states/cities will follow the IRS guidelines?
- Do taxpayers have the additional time to fund their IRA account?
- Will this extension apply to other tax related deadlines such as qualified opportunity zone or like-kind exchange reinvestment timelines?
This delay is applicable to federal taxes only at this time.
States are not bound by IRS policy but most tend to follow Federal leadership.
We will keep you updated on Federal and State developments as things progress.
In the interim, please know that we are here to help in any way possible.
