U.S. Rep. Paul Mitchell (R-MI) this week commended action by the U.S. Treasury Department to defer tax payment due dates for Americans and small businesses.
“Last week, I sent a letter to the IRS with Rep. Josh Gottheimer (D-NJ) urging them to extend this year’s tax filing deadlines for individuals and businesses by 90 days,” Rep. Mitchell said on March 18, referring to the lawmakers’ March 13 letter. “I am pleased to see the IRS responded to this request by announcing it will allow small businesses and families the ability to defer payments of any taxes owed.”
Due to the coronavirus, the Treasury Department and IRS on Wednesday released guidance for deferring tax payments that further explains an announcement made on Tuesday by U.S. Treasury Secretary Steven Mnuchin, who said that individuals would be able to defer up to $1 million and corporations would be able to defer up to $10 million for 90 days without penalties and interest.
Individuals and corporations now may defer from April 15 until July 15 payments, including for self-employment taxes, according to the guidance, which notes that the $1 million limit applies to both single filers and married couples filing joint returns.
The extension of the payment due date also applies to taxpayers’ 2019 taxes due on April 15, as well as to federal estimated income tax payments due April 15 for tax year 2020, the guidance says.
However, the deadline to file tax returns has not been extended and remains April 15, though, as is normal procedure, people may request the IRS grant them six-month extensions to file their returns.
“Americans should be focused on the health and safety of their families and communities, and this move by the IRS gives much needed financial flexibility during this time,” said Rep. Mitchell.