Written by David Wheeler Newman
Treasury Secretary Steven Mnuchin announced that individual taxpayers may defer payment of tax bills up to $1 million for ninety days, interest and penalty free, as part of a coronavirus stimulus bill announced by the administration on March 17. According to the Secretary, the $1 million limit is intended to provide relief to small businesses and pass-through entities like partnerships and limited liability companies.
Corporations may defer up to $10 million in tax payments under this pronouncement.
Note that while the California Franchise Tax Board announced on March 13 that filing of returns – in addition to payment of tax – may be deferred for 90 days, there was no change announced in the federal filing deadline. The Treasury Secretary instructed taxpayers to file their returns as scheduled, but advised that no interest or penalties would be charged if tax payments were not made with the returns.
Finally, as part of the announcement, Secretary Mnuchin assured taxpayers that tax refunds will not be delayed for those who file.