Small businesses may not have to submit tax payments this year until July 15.
Steve Mnuchin, Secretary of the Treasury, has announced that even though the April 15 filing deadline remains intact, a new ruling will allow “those who owe a payment to the IRS to defer the payment until July 15 without interest or penalties.”
The Secretary added that both the Treasury Department and Internal Revenue Service are trying to ensure that “hardworking Americans and businesses have additional liquidity for the next several months.”
Mnuchin also announced that any penalties and interest that would otherwise normally apply during the three-month period will be waived.
It is thought that the deferment decision, which will also apply to individuals, will keep about $300 billion into the economy for the near term.
The new ruling specifically applies to individuals who file as a small business and may owe up to $1 million in tax payments, as well as both corporations and sole proprietors owing up to $10 million.
At the same time, South Dakota Senator John Thune has just introduced legislation asking for a delay in the filing deadline as well.
Co-sponsor of the legislation, Angus King of Maine, in a statement, remarked: “By moving the tax filing deadline back, we can offer some breathing room for millions of Americans who are trying to do their civic duty and protect their communities.”
By Garry Boulard
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