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Q&A: What does 90-day tax payment delay mean for filers?

MWE Headshots Thumbnail LanceChristensen - Q&A: What does 90-day tax payment delay mean for filers?The Trump administration has announced that most individuals and businesses will be allowed to delay paying their federal tax bills for 90 days as part of an emergency relief plan amid the coronavirus pandemic. After the news broke, The Associated Press caught up with MWE tax partner Lance Christensen, CPA, to provide answers to the questions related to the delay and its potential impact on the U.S. economy. Stay tuned for more updates.

 

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The Trump administration has announced that most individuals and businesses will be allowed to delay paying their federal tax bills for 90 days as part of an emergency relief plan amid the coronavirus pandemic.

Some questions and answers about the delay and its potential impact on the U.S. economy.
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DO I STILL NEED TO FILE?

Yes.

The details on the program are still scant. But as of now, taxpayers need to file their federal tax returns by the traditional April 15 deadline. The 90-day extension is solely for the money that is due. Those delayed payments are now due July 15.

However, taxpayers who are facing difficulty filing on time always still have the option to request a six-month extension. Visit the IRS website for more details.
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WHO GETS TO WAIT TO PAY?

Treasury Secretary Steven Mnuchin said individuals who owe less than $1 million will be able to delay paying. Corporations will be able to defer payment on taxes due up to $10 million. Mnuchin said only the “super rich” would be excluded.

However, because details are still pending, it’s unclear if the delay applies to trusts or whether people who make quarterly payments on their taxes will still need to make that first payment by April 15, said Lance Christensen, a partner at the accounting firm of Margolin Winer & Evens.  Read More>>>


Read: Can married taxpayers file separately to lower their tax bills?

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