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With the ongoing novel coronavirus pandemic in the United States leading to the temporary closing of some businesses and a money squeeze for workers having their hours cut, paying taxes might seem an insurmountable problem.
To aid Americans who need more time to gather the money to pay taxes owed, or even just to file in the first place, the U.S. government is offering an extension beyond the usual April 15 deadline. On Tuesday, Secretary of the Treasury Steve Mnuchin announced the IRA is waiving interest and penalties for 90 days for those Americans who still owe up to $1 million in taxes and will not be able to file by the deadline.
"We encourage those Americans who can file their taxes to continue to file their taxes because you will get tax refunds and we don't want you to lose out," Mnuchin stated during the press briefing Tuesday. "If you owe a payment to the IRS, you can defer up to a million dollars, as an individual...[which] covers pass-throughs and businesses, and $10 million for corporations, interest-free and penalty-free for 90 days."
This means that those who owe taxes will still have to pay the IRS, but they will not face any additional penalties or accrue interest if their payments are not made by April 15.
Those who can file their taxes should do so immediately, so they can receive any refunds owed to them by the federal government. Filing online is the quickest way to receive a refund. The IRS website states that those who file online on average receive a refund within 21 days of filing via a direct deposit.
The tax refunds most Americans receive can offer some respite to those most affected during these unprecedented times as the closures of businesses and the recommendation to practice social distancing has kept many people in their homes instead of spending money in stores and restaurants.
There is also a large $1 trillion dollar package Mnuchin has proposed to Republicans meant to relieve Americans during the pandemic, which includes the possibility of "sending checks to Americans immediately," though Mnuchin would not specify an amount for those checks during Tuesday's briefing.
"What we've heard from hard-working Americans, many companies have now shut down, whether its bars or restaurants. Americans need cash now and the president wants to get cash now. And I mean now, in the next two weeks," Mnuchin said.
The House has already passed the Families First Coronavirus Response Act aimed at providing sick leave and other relief measures to Americans. The bill still has to be taken up and approved by the Senate before the president can sign it into law.
According to a tracker from Johns Hopkins University, there are currently 5,853 confirmed cases of COVID-19 in the United States, resulting in the deaths of 98 people.
