Today, Treasury Secretary Steven Mnuchin announced that taxpayers owing a payment to the IRS may defer the payment for 90 days. Treasury Secretary Mnuchin said individuals can defer up to $1 million, and corporations may defer up to $10 million. No interest and penalties will be charged on these deferred payments. Mnuchin suggested many Americans should still strive to file their returns by April 15th in order to receive any refunds they may be due.
At this time, it does not appear that the Treasury is extending the April 15th deadline, only allowing a deferral of payments as outlined above. This would still require taxpayers to either file their returns on time or request an extension of time to file. It is also unclear whether the deferral applies only to the taxes due or if it will apply to estimated tax payments as well.
We will provide additional information regarding the details of the deferral of payments as it becomes available.
This announcement does not directly pertain to state and local jurisdictions. We will monitor state and local governments to see how they react to this announcement.