Federal Government Delays Tax Payments Deadline by 90 Days
Treasury Secretary Steven Mnuchin said today that taxpayers will get three more months to pay the income taxes they owe for 2019.
As part of its coronavirus response, the federal government will give filers 90 days to pay income taxes due on up to $1 million in tax owed, Mnuchin said in Washington. The reprieve on that amount would cover many pass-through entities and small businesses, he said. Corporate filers would get the same length of time to pay amounts due on up to $10 million in taxes owed. Taxpayers won’t be subject to interest and penalties during that three-month deferral period.
The due date for tax payments for last year’s taxes from April 15th to July 15th. “All you have to do is file your taxes,” he said. “You’ll automatically not get charged interest and penalties.” The first payment is typically due April 15.
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If you expect to receive a refund, you should file as soon as possible. Most Americans should fall into that category. Indeed, the IRS processed more than 65 million income tax returns as of March 6. Of these, 52.7 million filers received tax refunds, averaging $3,012.
While the federal government is granting taxpayers the extra time to make payments, you should check the deadline for your state. You can find a list of states’ tax developments here.