The US Treasury and IRS are giving Americans a three-month reprieve on their tax debts amid the coronavirus pandemic, by extending deadlines this year.
While those who owe will now have until July 15 to settle their 2019 debt, taxpayers who are expecting a refund are to file as usual. This is in comparison to the usual April 15 deadline. In addition, all interest and penalties will be waived during this time.
The announcement arrives as the Trump administration tries its best to shield the country’s economy from turmoil. Treasury Secretary Steven Mnuchin, says corporate filers who owe up to $1 million and companies that owe $10 million or less will be eligible for the deferral.
Mnuchin adds, “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.”
Furthermore, the IRS has already processed more than 65 million income tax returns as of March 6; and of those, 52.7 million received refunds, averaging $3,012.
In addition to the IRS’ announcements, some have rolled out on a state-by-state case. For example, in California, the state is granting a 60-day delay for individuals and businesses affected and unable to file on time.