Treasury and IRS to delay tax payment deadline by 90 days
Secretary of the Treasury, Steven Mnuchin, informed taxpayers on Tuesday March 17, 2020, that they can delay paying their income taxes on as much as $1 million in taxes owed for up to 90 days. Taxpayers won’t be subject to penalties or interest during that 90 day period.
The deferment on installments applies to government returns. Double-check your state’s tax deadlines to see if there are any delays.
You should still receive your 2019 income tax return from the federal government as soon as possible. Particularly if you’re expecting a refund and need cash.
While the federal government is granting taxpayers a little more time, you should in any case monitor your state’s position. Some states have turned out deferrals due to coronavirus.
For example, California is allowing a 60-day delay for influenced individuals and organizations unable to file on time.
Meanwhile, Maryland has added time for certain business tax returns, and the state will allow an extension to individuals if the federal government pushes ahead on its deferral.
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