As per the announcements made on Wednesday night, the victims of the infamous coronavirus, be it individuals or businesses, if negatively affected they can have an extension of the tax payment which is beyond known deadline of April 15th. The Treasury Department is informed and shall operate accordingly.
Addressing from the Oval Office, Trump also said that emergency authority can be used to allow individual taxpayers and businesses to extend the payment of the taxes by the known deadline in case they have experienced adverse and challenging effects from the deadly virus.
The Treasury Secretary, Steven Mnuchin, said that the payment delay is to affect almost all the Americans except for the “super rich”. This delay also means that over $200 billion are to be put back into the economy which would instead have gone in the payment of taxes next month, he said to Congress. The Secretary did not specify a new deadline either.
Along with the same, he also said that the delay is not to affect the large organizations and extremely wealthy taxpayers. However, there are no such thresholds on incomes or assets have been put forth by the government which are supposed to determine one’s qualification for the extension.
The House Appropriations subcommittee has been told by Mnuchin that the tax delay can be granted without the requirement of approval from the Congress. The IRS is also expected to waive interest payments or any other kinds of penalties if the deadline is missed, he added.
As per the current rules, the taxpayers do get an automatic extension upon filing their tax returns, however, they are also obliged to pay tax on the amount owed after they have filed the returns. Congress Members urged the administration to make this decision at a time of coronavirus crisis.