Treasury Secretary Steven Mnuchin said that individual taxpayers who owe up to a million dollars in federal taxes can defer paying until July 15, while corporations can defer up to $10 million.
Mnuchin also announced today that the Treasury Department would not extend the deadline to file taxes by the April 15 deadline, as much of the tax filing can be done online.
“We encourage Americans who can file taxes to continue to file taxes on April 15 because for many Americans, you will get tax refunds and we don’t want you to lose out on those tax refunds,” Mnuchin said.
Mnuchin added that if individuals or corporations owe money to the Internal Revenue Service after filing their taxes, those payments now are able to be deferred for up to 90 days interest-free. “If you owe a payment to the IRS, you can defer up to $1 million as an individual, and $10 million to corporations, interest-free and penalty-free for 90 days,” Mnuchin continued. “The reason we’re doing a million dollars is because it covers a lot of pass-through and small businesses,” he noted. Payment will be due on July 15.
The IRS has set up a Coronavirus Tax Relief page to disseminate information to o help taxpayers, businesses and others affected by the coronavirus. Information is available on various topics of interest, including high deductible health plans and expenses related to COVID-19.
As always, feel free to contact any member of our team at (610) 828-1900 with questions or me at Marty.McCarthy@MCC-CPAs.com.
Stay healthy and safe,
Marty McCarthy, CCIFP
McCarthy & Company
Disclaimer: This alert is for informational purposes only and does not constitute professional advice. Information contained in this communication is not intended or written to be used as tax advice, and cannot be used by the recipient to avoid penalties that may be imposed under the Internal Revenue Code. We strongly advise you to seek professional assistance with respect to your specific issue(s).
Source: McCarthy & Company, PC