Pelosi, Mnuchin Haggle for Compromise on Virus Relief Bill
Tax forms and payments won’t be due to the Internal Revenue Service until July 15 this year, Treasury Secretary Steven Mnuchin said in a tweet.
“We are moving Tax Day from April 15 to July 15,” Mnuchin said. “All taxpayers and businesses will have this additional time to file and make payments without interest or penalties.”
The announcement follows an earlier decision to move the payment deadline, but not the filing deadline, to July 15 in response to the coronavirus pandemic. Tax professionals and lawmakers of both parties have said it could confuse taxpayers to have forms and payments due on separate days.
The change gives individuals and corporations an additional three months to file before they would owe interest and penalties for filing late. Many states have also delayed their filing and payment deadlines.
Mnuchin is encouraging taxpayers who are due a refund to go ahead and file despite the delay so they can get their checks more quickly. The IRS recommends filing electronically and opting for direct deposit to get the money within about three weeks.
Part of the concern is that it could be difficult or unsafe for people to met with their tax preparer before April 15 while most schools and many businesses are shut down to prevent the spread of the virus.
“It’s welcome news and it will put the minds of millions of taxpayers and preparers at ease,” said Cindy Hockenberry, director of tax research and government relations at the National Association of Tax Professionals.
--With assistance from Allyson Versprille.