It's official: April 15 tax payment deadline extended by 90 days due to coronavirus outbreak

Taxpayers will have up to 90 days to pay any federal income taxes due, under some new rules in response to the coronavirus outbreak.

All individuals and non-corporate tax filers will be able to postpone paying up to $1 million in federal income taxes, including self-employment taxes. 

The due date for paying the money moves from April 15 to July 15 — without any penalties or interest being due, according to the U.S. Treasury Department.

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On March 20, President Donald Trump said the extension also would apply to the April 15 deadline for filing a return. 

"We're moving it out to July 15 so people will have time," Trump said. He added that the hope is that people will be getting back to their more normal lives by July.

He stressed again: "No interest, no penalties" for those who delay making payments or filing a federal income tax return by April 15.

Trump said people want to file earlier if they're getting a tax refund, in order to put more money in their pockets sooner rather than later. 

Some confusion has taken place over whether just the payment deadline would be extended or the date to file would be extended, too. 

For those who can't file a retun by April 15, the Internal Revenue Service reminds individual taxpayers that everyone is eligible to request a six-month extension to file their return. To request a filing extension use Form 4868.

As for corporations, the Treasury said corporate taxpayers can delay until July 15 up to $10 million of federal income tax payments that would have been due April 15. 

“Americans should file their tax returns by April 15 because many will receive a refund. Those filing will be able to take advantage of their refunds sooner,” said Treasury Secretary Steven T. Mnuchin in a statement released Wednesday.

The Treasury Department expects that up to $300 billion will remain in the economy in the near term, instead of heading to Washington in a few weeks to pay federal income taxes.  

Michigan had not said as of March 20 whether that July 15 extension to pay would apply to state income taxes. 

Small businesses in Michigan, though, are getting another break. 

Small businesses that have experienced disrupted operations because of the COVID-19 pandemic will have more time to make their sales, use and withholding tax monthly payment, according to the Michigan Department of Treasury.

Michigan's small businesses that were scheduled to make those tax payments on March 20 can postpone filing and payment requirements until April 20. All penalties and interest are waived for 30 days.

“The past week has been hard for small businesses owners across the state as we work to mitigate the spread of coronavirus,” Gov. Gretchen Whitmer said in a statement.

“Allowing them more time to pay their monthly tax payments will help us provide some much-needed assistance.”

Businesses with questions can call the Treasury Business Tax Customer Service Center at 517-636-6925.

ContactSusan Tompor at313-222-8876 or stompor@freepress.com. Follow her on Twitter@tompor. Read more on business and sign up for our business newsletter.