Tax Payment Deferrals Allowed Due to COVID-19
Tax payment deadline deferment allows individuals and corporations to delay tax payments for up to 90 days without incurring interest or penalties.
In a press conference on Tuesday, Treasury Secretary Steven Mnuchin said that taxpayers are able to defer up to $1 million in tax payments to the IRS for 90 days due to the effects of the coronavirus. Deferment of payments will not incur any interest or penalties.
The threshold of $1 million was chosen in order to account for pass-through entities that file through the individual owner’s return. Corporations will be allowed to defer up to $10 million in tax payments.
Mnuchin is encouraging Americans who can file by April 15th to still do so. At this time, the filing date has not been extended.
There may be more tax related developments in the days to come. We are committed to providing you with proactive communications about these as they arise. You can follow DS+B on LinkedIn and Twitter to receive updates as they are made available.