COVID-19 (coronavirus) has taken center stage in recent weeks and, as the virus continues to spread, has led to mass closings, social distancing, postponement of the Ohio election, and, as of Tuesday, March 17, 2020, has deferred this year’s tax payment deadline by 90 days.
During a news conference Tuesday, Treasury Secretary Steven Mnuchin said the government has made the decision to defer $300 billion in IRS payments by 90 days, penalty-free.
“If you owe a payment to the IRS, you can defer up to $1 million as an individual,” said Mnuchin. Businesses, on the other hand, will be allowed to defer up to $10 million in payments.
Not only do government officials hope that moving the tax payment deadline back by 90 days will help keep taxpayers afloat amidst the coronavirus pandemic, the move will also help protect IRS employees. This decision comes after the Centers for Disease Control and Prevention officially advised against gatherings of groups of 50 or more.
“We don’t want you to lose out on those tax refunds,” said Mnuchin. “We want you to make sure you get them. Many people do this electronically, which is easy for them and easy for the IRS.”
In an additional effort to help more taxpayers cope with the economic fallout amid the coronavirus crisis, the administration is currently negotiating with lawmakers to approve an economic stimulus package designed to help U.S. businesses and taxpayers deal with the economic fallout resulting from the rapid spread of coronavirus.
“Americans need cash now. And the president wants to get cash now,” said Mnuchin. “And I mean now – in the next two weeks.”
Additional information will likely be revealed in the coming days.
Rea & Associates continues to monitor this situation and encourages clients to utilize the electronic resources available to help streamline the tax prep process. To learn more about the steps Rea & Associates is taking to protect you and our employees against coronavirus, visit www.reacpa.com/coronavirus. We are using this resource to provide you with updates as well as information about the various resources available to you, including how to securely share files with your Rea representative, conduct virtual meetings and make payments online.