In a press conference Tuesday afternoon, U.S. Treasury Secretary Steven Mnuchin announced that taxpayers may delay making tax payments that would otherwise be due on April 15 for up to 90 days. Individual taxpayers can defer paying up to $1 million dollars in tax due—which Mnuchin noted should cover most pass-through entities that are taxed as individuals. Meanwhile, corporations may defer up to $10 million, he said. No interest or penalties will be assessed against the deferred payments.
This deferral is expected to introduce $300 billion of liquidity into the economy. The announcement did not appear to include a blanket delay in the filing date for the tax returns, only the payment date, and Mnuchin urged taxpayers to file their returns as soon as possible, as many may be entitled to refunds. For more information, contact ABA’s John Kinsella.