Congress Announced:

Secretary Mnuchin Defers Tax Payments, Delivers Relief for Taxpayers & Small Businesses

Because many families, businesses, and tax preparers may be unable to meet their tax obligations despite their best efforts, President Trump is allowing “the Treasury Department to defer tax payments, without interest or penalties, for certain individuals and businesses negatively impacted.”The Treasury Secretary Has Deferred Tax Payments, and Waived Penalties

  • Families and small businesses can defer tax payments for 90 days. This covers a broad range of Americans, including small businesses that file as individuals who owe up to $1 million, and other categories of small businesses, sole proprietors, and corporations owing up to $10 million.
  • Penalties and interest that would otherwise apply during this nearly three-month period will be waived.

$300 Billion for Relief Targeted to Those Who Need It:

  • Targeted relief means help goes to those in trouble, rather than simply inflating profits.
  • Taxpayers should continue to file their taxes by April 15 as normal. Many taxpayers will get refunds and this will help provide additional funding to families that need it. But if an eligible taxpayer owes a tax payment, they have the option to defer.
  • States take direction from the federal government, so this key guidance allows state departments of revenue to take action.

Let’s Help Connect Constituents

  • This relief is will ensure families and small businesses have the cash they need.
  • Taxpayers should file by April 15 as normal and the deferral will be applied automatically.

Contact us here at BKC to discuss your specific tax situation and necessary filings.

Read more tax news here.

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