Author(s): TaxNotes® staff
The following article first appeared in TaxNotes, Tuesday, March 17 2020.
Tax payments up to $1 million for individuals can be deferred for 90 days under part of a new economic stimulus plan unveiled by the Trump administration March 17.
Corporations can defer up to $10 million in tax payments for 90 days, Treasury Secretary Steven Mnuchin announced during the White House’s daily coronavirus briefing. The $1 million limit for individuals was established to cover small businesses and passthrough entities, he said.
“We encourage those Americans who can file their taxes to continue to file their taxes [by] April 15,” Mnuchin said. “Just file your taxes,” before the new deadline, he said, and “you will automatically not get charged interest and penalties.”
Refund issuance will not be affected for those who file, Mnuchin added.
Mnuchin said the plan will defer as much as $300 billion in IRS payments. “That’s an enormous amount of liquidity in the system,” he said.