United States – IRS Announces Tax Payment Extension in Response to COVID-19 Emergency

US – IRS Announces Tax Payment Extension re: COVID-19

U.S. Treasury Secretary Steven Mnuchin publicly announced that individuals who owe the Internal Revenue Service (IRS) up to $1 million can defer that payment, interest-, and penalty-free, for 90 days. Taxpayers appear to have until July 15, 2020 to pay any under-payment of tax for the 2019 tax year penalty-free.

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U.S. Treasury Secretary Steven Mnuchin publicly announced that individuals who owe the Internal Revenue Service (IRS) up to $1 million can defer that payment, interest-, and penalty-free, for 90 days.1  The Secretary announced similar relief for corporations that owe up to $10 million.  Based on this unofficial announcement, taxpayers appear to have until July 15, 2020 to pay any under-payment of tax for the 2019 tax year penalty-free.   This GMS Flash Alert will be updated when additional details are released by the U.S. Treasury Department or IRS.

While the payment deadline appears to be extended, the Secretary encourages individuals who are in refund positions to timely file their returns in order to receive their refunds. 

WHY THIS MATTERS

The extended payment deadline provides relief to taxpayers who are unable to pay their outstanding tax liability by April 15th.

FOOTNOTE

1  See a media report of the press conference, "Treasury and IRS to Delay Tax Season Deadline by 90 Days" (March 17, 2020) on NBC NewYork (online).  (Note that this is a 3rd party (non-governmental, non-KPMG) website. Providing this link does not represent an endorsement of this website by KPMG.)    

 

The above information is not intended to be "written advice concerning one or more Federal tax matters" subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230 as the content of this document is issued for general informational purposes only.

The information contained in this newsletter was submitted by the KPMG International member firm in the United States.

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GMS Flash Alert is a Global Mobility Services publication of the KPMG LLP Washington National Tax practice. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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