Treasury Secretary Mnuchin announced in a press conference that taxpayers will be allowed to defer tax payments for up to 90 days past the upcoming April 15th deadline. Mnuchin said interest and penalties will automatically be waived on tax payments for individuals who owe up to $1 million and corporations owing up to $10 million. He urged taxpayers to continue filing and indicated that the IRS will continue to process refunds.
Taxpayers and tax pros have been waiting for IRS guidance given the President's national emergency declaration and directive to Treasury to provide tax deadline relief. However, uncertainty remains until official written guidance is published from the IRS. Among items still open:
- The effect of the penalty waiver on first quarter 2020 estimated tax payments
- Whether extensions are due in April or July for individual and C corporation 2019 returns
We expect states to follow suit, but that is a state-by-state issue. The AICPA is keeping an up-to-date listing of state filing guidance in response to the coronavirus here.
Stay tuned to EideBailly.com and ebtaxblog.com for further details.