Treasury Secretary announces 90-day payment extension for most taxpayers
Treasury Secretary Steven Mnuchin announced during a March 17 press briefing that some 2019 tax payments can be deferred until July 15. Taxpayers will still be required to file returns, but individuals can defer tax payments up to $1 million for 90 days. Corporations can defer up to $10 million of tax payments for 90 days.
Treasury Secretary Steven Mnuchin stated at a press conference on March 17, 2020, “We encourage those Americans who can file their taxes to continue to file their taxes [by] April 15,” Mnuchin said, especially encouraging people who will be getting tax refunds to do so. “Just file your taxes,” he said, and “you will automatically not get charged interest and penalties” on payments made within the 90-day deferral period.
Defer Payments with No Interest and Penalties
“We encourage those Americans who can file their taxes to continue to file on April 15, because for many, you will get tax refunds, and we do not want you to lose out on those refunds.” Senate Finance Committee Chairman Chuck Grassley, R-Iowa, released a statement regarding Mnuchin’s announcement “This is a commonsense step to afford individual Americans and businesses access to financial resources they need during this time of economic and social disruption,” Grassley said. “This will allow individual filers, small businesses and corporations more financial flexibility in the months ahead as the country faces continued fallout from the coronavirus.”
Tax Filing Extension
Mnuchin’s statement did not extend the tax filing due date. For individuals the filing date, generally, is April 15. But they can get an automatic extension to file till October 15 by, for example, filing Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return.
There is not yet guidance on estimated payments that are due between April and July. We will continue to monitor and update information as guidance is released by the IRS/Treasury. If you have any questions or concerns about filing your tax return or extension, please contact us at 517.323.7500.