The Treasury announced today that individuals and businesses will be allowed to defer their 2019 tax payments for up to 90 days in light of the disruption and losses caused by the Coronavirus outbreak. This moves the due date for payments from April 15 to July 15.
Individuals, as well as pass-through entities that pay taxes through the individual code on their owners’ returns, are allowed to defer up to $1 million in tax payments to the IRS. Corporations will be able to defer up to $10 million in tax payments. All deferrals will be interest-free and penalty-free.
The Treasury Secretary encouraged individuals who can still file by April 15 to do so, especially if they are due a refund that could supply needed cash.
This announcement comes on the heels of bipartisan calls from lawmakers and the President to do more to ease the financial burden for individuals and small businesses during the COVID-19 health crisis.
We assume that trusts will receive the same treatment as individuals, but more clarity needs to be given by the Treasury Secretary.
