US Secretary of the Treasury Steven Mnuchin issued a notice on Friday that tax day is deferred to July 15, following President Donald Trump’s emergency declaration pursuant to the Stafford Act.
In an effort to reduce the economic impact of COVID-19, the current administration is seeking ways to mitigate the damage. The administration already introduced a package to expand paid sick leave for those experiencing symptoms, or for those taking care of a sick family member. While lawmakers discuss a stimulus package, Mnuchin hopes the extension will provide Americans some relief.
“Americans should file their tax returns by April 15 because many will receive a refund. Those filing will be able to take advantage of their refunds sooner,” said Mnuchin. “This deferment allows those who owe a payment to the IRS to defer the payment until July 15 without interest or penalties. Treasury and IRS are ensuring that hardworking Americans and businesses have additional liquidity for the next several months.”
Individual and small businesses will be able to defer up to $1 million in payments, and larger corporations will be able to defer up to $10 million without interest or penalties. However, this extension only applies to federal income taxes; state deadlines may vary.
The IRS provides additional support that can be found here.
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