Treasury Secretary Steven Mnuchin on Friday announced that Americans will have until July 15 to file their taxes, moving the annual April 15 deadline to stem the effects of the coronavirus outbreak.
“At [President Trump’s] direction, we are moving Tax Day from April 15 to July 15. All taxpayers and businesses will have this additional time to file and make payments without interest or penalties,” Mnuchin wrote on Twitter.
At @realDonaldTrump’s direction, we are moving Tax Day from April 15 to July 15. All taxpayers and businesses will have this additional time to file and make payments without interest or penalties.
— Steven Mnuchin (@stevenmnuchin1) March 20, 2020
“If you have refunds or credits, you can still claim now,” President Trump said Friday at a White House press conference.
Mnuchin echoed that, saying: “I encourage all taxpayers who may have tax refunds to file now to get your money.”
The Treasury Secretary said delaying Tax Day will leave some $300 billion in the economy. Americans who are losing income from layoff and reduced hours will be able to keep their money to get through the next weeks and months as the virus spikes and then recedes.
The new deadline was a swift change from what Mnuchin announced just Wednesday. Then, the Secretary said taxes must be filed by April 15, but added, “If you owe a payment to the IRS, you can defer up to $1 million as an individual” for 90 days without penalties or interest.
Mnuchin also advised Americans to file now because many get refunds. “We encourage those Americans who can file their taxes, to continue to file their taxes on April 15 because for many Americans you will get tax refunds. We don’t want you to lose out on those tax refunds,” Mnuchin said.
Senate Finance Committee Chairman Chuck Grassley (R-IA) applauded the move. “This is a commonsense step to afford individual Americans and businesses access to financial resources they need during this time of economic and social disruption,” he said.
“The administration is also considering delaying the estimated quarterly tax payments that self-employed workers and businesses pay the IRS throughout the year, according to two people familiar with the matter. The first payment is typically due April 15,” the Los Angeles Times reported.
Meanwhile, the U.S. Senate is considering upping the payments to Americans in a massive stimulus bill to mitigate the effects of the coronavirus outbreak on the economy.
Sources familiar with the negotiations tell Fox News that members of Congress and the Treasury Department are discussing plans to deliver $1,200 to all Americans who qualify in two payments, for a total of $2,400. Children will receive $500 under the plan.
But not all would qualify. “One source told Fox Business Network that the amount would start to reduce for those making $75,000 and above — and the checks would be limited to those who make $99,000 or less.”
Senate Majority Leader Mitch McConnell (R-KY) said Thursday that he hopes to deliver aid to families “as rapidly as possible.”
“Senate Republicans want to put cash in the hands of the American people,” McConnell said. “This is something we want to do right away. This is not an ordinary policy, but this is not an ordinary time. The American people need help and they need it fast. This will deliver it.”
McConnell added that relief for small businesses, another part of the rescue plan, would help them to “endure, help workers keep their jobs, and businesses and workers emerge from this ready to thrive.”