U.S. Treasury Secretary Steven Mnuchin announced relief aimed at helping taxpayers who have been impacted by the coronavirus pandemic. Secretary Mnuchin announced that the IRS will allow:
- individuals to defer federal income payments of up to $1 million for 90 days without incurring interest or penalties
- corporations to defer up to $10 million in federal income tax payments for the same 90 day period without incurring interest or penalty
It remains to be seen whether taxpayers will be able to take advantage of this relief without the need to file an extension. For the time being, the IRS is asking taxpayers to continue to file their tax returns before the filing deadline if they are able to do so. Many states are also considering some form of relief for taxpayers. We’ll continue to monitor the situation for further developments.
