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03.19.2020 Treasury Department Clarifies 90 Day Delayed Payment of Taxes Owed to Curb Impact of COVID-19
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The Treasury Department has issued guidance following Secretary Mnuchin’s statements that a 90 day due date extension for payment of some taxes owed would be allowed. The Department, in Notice 2020-17, reinforced that although payment of some taxes owed can be deferred, taxpayers must submit their forms to the Internal Revenue Service – or officially request an extension – by April 15.
Individuals can delay payments of up to $1 million in taxes and corporations can get payments of up to $10 million deferred until July 15 without interest and penalties, according to a notice published Wednesday. “Americans should file their tax returns by April 15 because many will receive a refund. Those filing will be able to take advantage of their refunds sooner,” Treasury Secretary Steven Mnuchin said in a statement. “This deferment allows those who owe a payment to the IRS to defer the payment until July 15 without interest or penalties.”
The guidance is meant to clarify confusion as to whether taxpayers must still file a return by April 15 and how the payment extension would affect their specific situations.
Those seeking the full statement from the IRS can find it here.
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