IRS To Allow Tax-Free, Penalty-Free Deferred Tax Payments

In an effort to provide relief in light of the COVID-19 outbreak, Treasury Secretary Steven Mnuchin announced that 90-day tax-free, penalty-free tax deferrals will be allowed as follows:

• Individuals: Individuals will be able to defer up to $1 million in IRS tax payments. This threshold was determined to allow for pass-through businesses that pay income taxes through their owners' tax returns.
• Corporations: Corporations will be allowed to defer up to $10 million in tax payments.

This announcement does not delay the April 15 filing deadline and applies to federal taxes only. You can view guidance here.

HLB Gross Collins, P.C. is closely monitoring IRS announcements. We are committed to helping clients minimize the tax burden through effective planning incorporating any available relief. Please let us know if you have any questions.