United States – IRS Announces Tax Payment Extension in Response to COVID-19 Emergency
US – IRS Announces Tax Payment Extension re: COVID-19
U.S. Treasury Secretary Steven Mnuchin publicly announced that individuals who owe the Internal Revenue Service (IRS) up to $1 million can defer that payment, interest-, and penalty-free, for 90 days. Taxpayers appear to have until July 15, 2020 to pay any under-payment of tax for the 2019 tax year penalty-free.
U.S. Treasury Secretary Steven Mnuchin publicly announced that individuals who owe the Internal Revenue Service (IRS) up to $1 million can defer that payment, interest-, and penalty-free, for 90 days.1 The Secretary announced similar relief for corporations that owe up to $10 million. Based on this unofficial announcement, taxpayers appear to have until July 15, 2020 to pay any under-payment of tax for the 2019 tax year penalty-free. This GMS Flash Alert will be updated when additional details are released by the U.S. Treasury Department or IRS.
While the payment deadline appears to be extended, the Secretary encourages individuals who are in refund positions to timely file their returns in order to receive their refunds.
WHY THIS MATTERS
The extended payment deadline provides relief to taxpayers who are unable to pay their outstanding tax liability by April 15th.
1 See a media report of the press conference, "Treasury and IRS to Delay Tax Season Deadline by 90 Days" (March 17, 2020) on NBC NewYork (online). (Note that this is a 3rd party (non-governmental, non-KPMG) website. Providing this link does not represent an endorsement of this website by KPMG.)
The above information is not intended to be "written advice concerning one or more Federal tax matters" subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230 as the content of this document is issued for general informational purposes only.
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