CNBC ALERT
Written by Darla Mercado
Written by Darla Mercado
KEY POINTS
- Treasury Secretary Steven Mnuchin said on Tuesday that taxpayers can delay paying their income taxes on as much as $1 million in taxes owed for up to 90 days.
- Ordinarily, individual income taxpayers must submit their 2019 tax returns by April 15. This delay would push the due date to July 15.
- This relief is for federal returns.
- The AICPA is keeping a list of states’ tax developments here.
- ISCPA is working with the ISTC and will share information with you as we receive it.
- ISCPA has created a COVID-19 Resource page that contains valuable information.
Taxpayers will get a three-month reprieve to pay the income taxes they owe for 2019, Treasury Secretary Steven Mnuchin said on Tuesday at a press conference.
As part of its coronavirus response, the federal government will give filers 90 days to pay income taxes due on up to $1 million in tax owed, Mnuchin said in Washington. The reprieve on that amount would cover many pass-through entities and small businesses, he said.
Corporate filers would get the same length of time to pay amounts due on up to $10 million in taxes owed, Mnuchin said. During that three-month deferral period, taxpayers won’t be subject to interest and penalties, he said.
The tax deadline delay pushes the due date for last year's taxes from April 15 to July 15.
You should still get your 2019 income tax return in to the federal government as soon as possible, especially if you’re due a refund and need cash.
“We encourage those Americans who can file their taxes to continue to file their taxes on April 15,” Mnuchin said. “Because for many Americans, you will get tax refunds.”
Indeed, the IRS processed more than 65 million income tax returns as of March 6. Of these, 52.7 million filers received tax refunds, averaging $3,012, according to the IRS.