Treasury Secretary Steven Mnuchin announced that individuals can defer tax payments up to $1 million and corporations can defer tax payments up to $10 million for 90 days. The $1 million limit for individuals was established to cover small businesses and pass-through entities. The payment deadline extension is in response to the COVID-19 outbreak.
At the time of this announcement Tuesday, Mnuchin did not extend the tax filing deadline of April 15, although individuals can file Form 4868, Application for Automatic Extension of Time to File, get an automatic extension to file until October 15 by filing.
This situation is evolving, as are most things involving the COVID-19 outbreak, and we expect to hear more guidance today from the IRS, including word on whether the tax filing deadline will also be extended.
In the meantime, the IRS has set up a Coronavirus Tax Relief Website dedicated to COVID-19 at www.irs.gov/coronavirus. This site focuses on steps to help taxpayers, businesses, and others affected by the virus. Currently, the site has guidance related to High Deductible Health Plans to cover Coronavirus costs without a deductible or cost-sharing. The IRS will be updating this site as new information is available.