In a March 17 White House briefing, Treasury Secretary Steven Mnuchin announced that the April 15 tax payment deadline will be extended for 90 days, until July 15. During this time, the IRS will also waive interest and penalties. Individuals who owe taxes would be able to defer up to $1 million and corporations up to $10 million.
This is part of a stimulus package which would defer an estimated $300 billion. The extension is designed to provide relief to millions of Americans who are being affected by the coronavirus pandemic and who may need temporary liquidity.
Mnuchin noted that the IRS will continue to process tax refunds, and he urged those who can file their tax returns to do so. “We encourage those Americans who can file their taxes to continue to file on April 15,” Mnuchin said.
We echo this advice. As of right now, it appears that this extension is for tax payments; the tax filing deadline is still currently April 15. Kreischer Miller’s Tax Strategies team continues to work diligently with our clients to file their tax returns, and we are advising them that it is still a good idea to do as much as possible before April 15.
Neither the IRS nor the Treasury Department has released any details about how the delay will work. We will provide additional updates as we learn more, but until we receive official guidance, Mnuchin’s comments should not be relied upon for planning purposes.
We are continuing to monitor this ever-evolving situation and will keep you informed as more details become available. If you have any questions about this or any other tax matters, please do not hesitate to contact your Kreischer Miller tax professional or any member of our Tax Strategies team.
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