Coronavirus & Taxes – Update from the Treasury Secretary (March 24th, 2020)

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Due to the pandemic sweeping across the globe and the country, the Treasury Secretary Steven Mnuchin announced that the IRS is postponing the tax deadline this year by 90 days, from April 15 to July 15.

Please note that the situation has been pretty dynamic, so check for any updates frequently.

The rules do not apply equally across the board, so take a look at the conditions below to see if you fall into one of the categories impacted by this change:

  • Individual taxpayers who owe $1M or less – file by July 15
  • Corporations that owe $10M or less – file by July 15
  • Individual taxpayers who expect a refund – file by April 15
  • Individual taxpayers who expect to file for a six-month extension – file by April 15

The rules above were initially released on March 17. On March 21, the extension to file taxes was expended to all taxpayers: individuals, corporations, trusts and estates, and those who pay self-employment tax.

This deferment in federal tax payments means that no interest or penalties will be assessed. Keep in mind that this extension applies to federal taxes; states may approach this issue differently and still expect the tax payment on April 15.

Additionally, in response to the virus, the IRS has closed all Taxpayer Assistance Centers and is not providing any face-to-face services. These closures are temporary and will be lifted once the threat of spreading the virus is eliminated.


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