When was the last time a government official told you not to pay your taxes?
For some, that day is today. The U.S. Treasury and the Internal Revenue Service announced they will allow U.S. individuals and corporations to defer making certain tax payments until the middle of the summer, hoping to keep the extra cash sloshing around the economy while we fight the coronavirus.
In the interim, penalties and interest won’t be assessed.
The April 15 filing deadline will remain in place, but postponing the deadline for certain tax payments will keep about $300 billion of additional liquidity in the economy, the Treasury Department and the IRS said in a statement.
Individuals and other non-corporate tax filers can defer up to $1 million of federal income tax until July 15. Corporate taxpayers could defer up to $10 million in tax payments.
Of course, the deferment assumes you were on the hook for up to $1 million in personal income taxes in the first place, which would be a nice problem to have.