Treasury and IRS Issue Guidance on Deferring Tax Payments Due to COVID-19
The U.S. Treasury Department and the IRS recently issued guidance allowing all individual and other non-corporate tax filers to defer up to $1 million in federal income tax payments normally due April 15, 2020 to July 15, 2020 without penalties or interest. The guidance also includes self-employment tax.
Corporate taxpayers are allowed to defer up to $10 million in federal income tax payments normally due April 15, 2020 to July 15, 2020 without penalties or interest.
The guidance, issued following President Trump’s emergency declaration on March 13, does not change the April 15 filing deadline. The Treasury and IRS encourage taxpayers to file their returns as soon as possible in order to take advantage of any refund they may receive.
The guidance will provide approximately $300 billion of additional liquidity in the economy. Both the Treasury and IRS will continue to work with Congress to provide additional relief to taxpayers.
For more information, visit IRS.gov/coronavirus.