There is no good news regarding the coronavirus outbreak. But as close as it gets to good news – if you owe the government money by way of a tax payment on April 15th, you have just been granted a reprieve of sorts.
You must still file by April 15th, but can defer any payment owed for up to 90 days. It’s no silver lining, but it’s as good as it gets these days.
from Business Insider:
The tax-filing deadline will remain April 15, but the IRS will waive penalties and interest on tax payments for 90 days
- Treasury Secretary Steven Mnuchin announced on Tuesday that Americans who owe taxes can defer their payment for 90 days, interest and penalty free, up to $1 million.
- Mnuchin said Americans should still file their taxes by the April 15 tax-filing deadline if they want to get a tax refund.
- Americans who want to defer their tax payments will also need to file a return to qualify.
- This post will be updated as more details about the tax relief guidelines are released.
Very few aspects of American life, if any, remain unaffected by the coronavirus. Taxes are no exception.
On Tuesday, Treasury Secretary Steven Mnuchin announced during a White House briefing that the IRS will waive interest and penalty charges for 90 days for Americans who owe up to $1 million in taxes. He encouraged Americans to still file their taxes by April 15; it’s unclear at this time whether the IRS will officially extend that filing deadline as well.
“If you owe a payment to the IRS, you can defer up to $1 million as an individual — and the reason we are doing $1 million is because that covers pass-throughs and small businesses — and $10 million for corporations, interest-free and penalty-free for 90 days. All you have to do is file your taxes,” Mnuchin said.
“We encourage those Americans who can file later taxes to continue to file their taxes because you will get tax refunds and we don’t want you to lose out. Many people do this electronically which is easy for them and the IRS,” he said.
Mnuchin said last week that he was working with the Trump administration to provide tax relief for “virtually all Americans other than the superrich.”
The IRS is so far processing tax returns and paying out refunds with no apparent delay, though IRS Commissioner Charles Rettig said employees who are eligible to work remotely should do so.
Some individual states, including California and Connecticut, have extended state tax return filing deadlines for residents.
Here are a few reasons to file your taxes now.