Treasury Announces Extension on Time to Pay Taxes
***This client alert has been updated. The updated version Treasury Issues Official Guidance on Extension of Time to Pay Taxes can be found here.***
In continued efforts to assist taxpayers during the COVID-19 Pandemic, the U.S. Department of Treasury announced on March 17, 2020, that the April 15 tax payment deadline is going to be extended for 90 days, without penalties and interest, for individual taxpayers who owe $ 1 million or less and corporations that owe $10 million or less. As of this update, there has not been any legislation or orders released on the extension, but sources report that Treasury Secretary Steven Mnuchin will rely on the IRS’s administrative authority under President Trump’s national-emergency declaration. There has not been any announcement concerning an automatic extension on filing returns as of this update, but the payment extension is welcome news for millions of taxpayers experiencing the economic effects of the coronavirus. More specific details on the payment extension will be forthcoming as they develop.