Tax Payers Able To Defer Tax Payments To The IRS For 90 Days In Light Of Outbreak

On Behalf Of Erin Blabac

Tax Payers Able To Defer Tax Payments To The IRS For 90 Days In Light Of Outbreak

Treasury Secretary Steven Mnuchin announced Tuesday that individual taxpayers will be able to defer up to $1 million in tax payments to the IRS for 90 days in light of the coronavirus outbreak.

Corporations will be able to defer up to $10 million in tax payments, Mr. Mnuchin said. The deferrals for individuals and corporations will be interest-free and penalty-free, he added.

Speaking during a news conference at the White House, Mr. Mnuchin said that the $1 million threshold was chosen in order provide relief for the owners of the many small businesses that operate as pass-through entities, meaning the owners pay taxes on company earnings through their individual tax returns.

“We encourage those Americans who can file their taxes to continue to file their 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. “We want you to make sure you get them.”

The tax deferral plan was one of several measures announced by President Donald Trump and members of the administration Tuesday in an effort to ease the financial burden on individuals and businesses affected by the coronavirus outbreak.

Contact one of our specialists to talk about what this change may mean for you and your business.