The AICPA is aware that Treasury Secretary Steve Mnuchin announced today a series of tax relief measures designed to assist taxpayers and tax preparers during the coronavirus pandemic.
We are confirming the specifics of these actions with Treasury and the IRS and will update members as soon as possible. Please continue to monitor this page for updates.
In a press conference on Tuesday, Treasury Secretary Steven Mnuchin announced that individuals and corporations can delay their tax payments for 90 days due to the coronavirus pandemic. Individuals can defer up to $1 million in payments for 90 days from the April 15 deadline. Corporations can defer up to $10 million in payments for 90 days. During that time, the IRS will not charge interest or penalties.
As of this writing, the IRS had not yet issued formal guidance on the policy. Mnuchin’s announcement did not delay the April 15 filing deadline.
The delay, as announced, affects 2019 federal income taxes only; Mnuchin did not address 2020 estimated tax payments, payroll taxes, or estate and gift taxes. For state tax developments related to the coronavirus outbreak, see the AICPA list here.
The relief came four days after President Donald Trump had declared the coronavirus pandemic a national emergency. Under Sec. 7508A, the declaration of an emergency under the Robert T. Stafford Disaster Relief and Emergency Assistance Act, P.L. 100-707, allows the IRS to delay certain tax filing and payment deadlines.
As early as last Tuesday, members of Congress had begun calling for a delay in the April 15 deadline, and last Wednesday the AICPA called for Treasury and the IRS to provide relief to all taxpayers.
For more news and reporting on the coronavirus and how CPAs can handle challenges related to the outbreak, visit the JofA’s coronavirus resources page.
— Alistair M. Nevius, J.D., (Alistair.Nevius@aicpa-cima.com) is the JofA’s editor in chief, tax.