As part of the Coronavirus response, Treasury Secretary Steven Mnuchin said yesterday at a press conference that the Treasury may give taxpayers a 90 day reprieve to pay income taxes owed for 2019. This is an effort to inject up to $300 billion into the U.S. economy amid the COVID-19 outbreak.
The 90-day extension to pay could allow individuals to defer up to $1 million of federal tax liability and corporations to defer up to $10 million. During this deferral period, taxpayers would not be subject to interest and penalties.
The details on this proposed legislation, however, are not yet finalized and certain elements remain unclear. We need confirmation on the following:
- Whether the tax filing deadline will officially be extended from the normal April 15th to July 15th, and whether tax extensions need to be filed on April 15th?
- Does this 90-day extension apply to the payment of first quarter 2020 tax payments or not?
- Regarding NJ and all other state filing and tax payment deadlines, we anticipate each state will have their own legislation.
We will continue to monitor this developing story and provide you with immediate updates as they become available. In the meantime, please feel free to reach out to the Cg Team (732.676.4100) with any questions. Please stay safe and healthy.