UPDATE: March 20, 2020, 3:15 p.m. -- The deadline to file taxes has now been extended to July 15, 2020. For more information, click here.
Treasury Secretary Steven Mnuchin announced Tuesday that individuals and corporations can delay their tax payments for 90 days due to the coronavirus health crisis. Note that this is an extension of time to pay, not an extension of time to file.
Individuals can now defer up to $1 million in payments for 90 days from the April 15th filing deadline. Corporations can defer up to $10 million in payments for 90 days. During that time, the IRS will not charge interest or penalties.
The delay, as announced, affects 2019 federal income taxes only; the Secretary did not address 2020 estimated tax payments, payroll taxes, or estate and gift taxes. For state tax developments related to the coronavirus outbreak, contact us directly.
The IRS is so far processing tax returns and paying out refunds for 2019 with no apparent delay.
There’s no time like the present to file your taxes. Again, the April 15th filing deadline still exists, meaning you could face a penalty for neglecting to file your taxes on time. Plus, if you’re expecting a refund, that money might come in handy if your income falls short during this economic slowdown.