Those who haven’t paid the IRS yet, may be in for good news as the government is deferring $300 billion in IRS payments by 90 days, penalty-free. In an announcement from Treasury Secretary Steven Mnuchin, “If you owe a payment to the IRS, you can defer up to $1 million as an individual.” Businesses will also be allowed to defer up to $10 million in payments. “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. The IRS deferring 2020 tax payments, comes amid the recent COVID-19 outbreak which has taken the world into lock downs. Many businesses, universities, and even travel has been halted for the time being, expecting to stay closed for a few months.
President Trump on If There Will Be A Tax Extension
The IRS deferring 2020 tax payments will allow those in the US who are practicing social isolation time to recover from the loss expected over the next few months. Although President Trump did state he would be in discussions about extending the tax deadline, we have not heard any news as of yet. If you have not done so yet, file your taxes by April 15th, especially if you are expecting a refund. The President also stated that he would like to get payouts to US citizens to ease the blow of current times.
IRS Deferring 2020 Tax Payments: Reactions
Some organizations have shown disapproval for how slow the process is moving in dire times. “The AICPA appreciates the efforts being made by the Treasury Department and IRS to provide relief to the taxpaying public. However, in light of the uncertainty and challenges caused by the spread of the Coronavirus pandemic, we are disappointed that the Treasury Department and IRS have yet to make an announcement on how relief would help millions of individuals and businesses and the CPAs who advise them,” said Edward Karl, CPA, AICPA vice president of tax policy and advocacy.”
Have you filed your taxes yet? What are your thoughts on the tax deferment? Tell us how you feel in the comment section below!
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