In response to the coronavirus outbreak disruption, the U.S. Government is giving most Americans and additional 90 days to pay their 2019 income tax bill. The extension was granted by the government to help provide a financial cushion to taxpayers dealing with the economic downtrend caused by the coronavirus outbreak.
U.S. Treasury Secretary Steven Mnuchin's announcement follows the national-emergency declaration made by President Trump on Monday. In a press conference on Tuesday, Mnuchin said the payment delays will allow roughly $300 billion of liquidity into the economy as individuals and businesses have more time to pay their taxes.
Americans will still have to file 2019 returns by April 15, 2020, but won't have to include payment. Mnuchin stated, "All you have to do is file your taxes. You'll automatically not get charged interest and penalties".
Who qualifies for the delay?
- Individuals who owe $1 million dollars or less
- Corporations who owe $10 million dollars or less
Will the IRS still process refunds?
Yes. Income tax refunds are still being processed. The IRS stated that typically 75% of American households receive refunds, but by late January they had only received 68-million individual returns, which is roughly half of what the agency expects to receive.
The IRS has announced a number of Coronavirus Tax Relief Resources.
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By Bill Galluccio