Tax season 2020: trump pushed back filing due to coronavirus

Some taxpayers will not need to submit their declarations until April 15, 2020. This was stated by US President Donald Trump. He said it was a measure to reduce the economic impact of coronavirus. Writes about it USA Today.

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“I will instruct the US Treasury Department to defer tax payments without interest or penalties for individuals and businesses that are negatively affected by the coronavirus,” Trump said.

He did not specify who would receive the extension and how much.

But the head of the Department of Finance, Steve Mnuchin, said that any extension would help “small and medium-sized businesses and hard-working people” who were severely affected by the widespread spread of the virus.

Mnuchin said the extension could add billions of dollars to the economy, giving businesses and individuals more cash.

“This action will provide the economy with more than $ 200 billion of additional liquidity,” Trump said.

But it could also mean that the government will have to increase borrowing in the short term in order to pay its bills before all declarations are filed.

On the subject: Words of the week: a simple explanation of tax terms you need to know in 2020

According to the administration, the extension does not require Congressional approval.

Trump said he uses “emergency powers.”

Democrats have already told the United States Internal Revenue Service (IRS) that they are worried that people may need more time to file returns.

The president and his team are trying to draw up a plan of economic incentives.

This step came after more than 1000 cases of COVID-19 were reported in the United States.

Private individuals, as a rule, must pay taxes by April 15, otherwise they will be fined. The IRS also provides taxpayers with the opportunity to apply for a six-month grace period.

The IRS may be forced to borrow money after deciding to defer tax payments. About $ 333 billion in individual taxes was raised in April 2019.

Democrats wrote a letter to the IRS about the impact of coronavirus on tax filing season. Lawmakers requested a “further assessment” regarding the need to extend the deadline for filing declarations.

“In particular, we are concerned about the ability of the IRS to provide assistance to taxpayers and process returns, as well as the ability of taxpayers to meet deadlines for filing applications,” lawmakers wrote.

The newly discovered coronavirus has infected nearly 130 people worldwide and killed more than 000 people.

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