The IRS has announced that taxpayers owing less than $1 million will have until July 15 to pay tax bills, and will incur no penalties or interest. Corporations owing less than $10 million also qualify for the payment extension.
U.S. Treasury Secretary Steven Mnuchin was quoted in the Wall Street Journal as saying that the move could free up $300 billion in temporary liquidity to U.S. households as they struggle to cope with the economic fallout from the coronavirus.
“But you still have to file your taxes by April 15,” Vineyard accountant Robert Arcudi told The Times. Arcudi, who owns R. P. Arcudi & Associates, said that the extension is for payment, not for filing. If taxpayers need more time to prepare taxes or get them to their accountants, they must apply for an extension to file them later.
Typically, Arcudi said, this would mean a taxpayer filing their taxes late would still have to pay any taxes due by April 15, or suffer penalties and interest. Arcudi said that most of his clients are sticking with the April 15 filing deadline.
“I’m swamped,” he said. “I can’t even see the bottom of my desk.”