March 20, 2020
Authored by: Tiffany McKenzie and Ashley Kennedy
As a strategy to help combat the economic effects of COVID-19, the U.S. Secretary of the Treasury Steven Mnuchin announced on Monday, March 16th, that taxpayers are getting a 90-day extension for paying their 2019 income taxes. The goal is to free up $300 billion in liquidity and to lessen the cash-flow burdens facing the country as businesses are temporarily forced to close or slash their workforce.
What does this mean?
While the deadline to file your taxes is still April 15th, 2020, tax payments that are made by July 15th will have no interest or penalty. As of today, individuals can defer up to $1 Million, while C corporations get an extension up to $10 million. The $1 million deferral for individuals is to help those