On Tuesday, the White House announced some details on how taxpayers will be able to defer any tax payments they have.
“If you owe a payment to the IRS, you can defer up to $1 million as an individual,” said Treasury Secretary Steve Mnuchin, adding that the payments would be “interest free and penalty free for 90 days.”
“All you have to do is file your taxes; you’ll automatically not get charged interest in penalties,” Mnuchin said during a coronavirus briefing with President Trump looking on.
But another tax-day ritual isn’t changing: You still have to file by April 15.
Texas Congressman Kevin Brady, the ranking Republican on the House Ways and Means Committee, made that clear in a press release: “Taxpayers should file by April 15 as normal and the deferral will be applied automatically.”
The process for getting an extension remains the same as any other year: You have to file form 4868, giving taxpayers until October 15 to file a return and pay anything owed.
The IRS itself has yet to provide details about how the deferral will work (Mnuchin promises that a press release is coming soon). As of about 11 a.m. on Wednesday, the agency’s page dedicated to the coronavirus crisis makes no mention of the tax deferral, and the “What’s Hot” page on irs.gov still says the deadline to “pay any tax owed is Wednesday, April 15, 2020.”
A continued push to delay the filing deadline
Getting clarity on the issue has been challenging. On March 10, Democratic lawmakers on the Ways and Means Committee sent a letter to the IRS to try find out more about any changes for the filing season. “We request your continued evaluation of whether there is any need to extend the tax filing season beyond the April 15 deadline” they wrote.
A spokesperson for the committee confirmed Wednesday morning that it has yet to receive a response.
On Monday, Congressman Tom Suozzi, a Democrat who represents parts of Long Island and Queens, followed up in a statement. “I am now calling on the Treasury Secretary Mnuchin and IRS Commissioner Rettig to extend the deadline to file tax returns,” saying we need to ensure financial security “by giving people the extra resources they need during this difficult time.”
Caroline Bruckner, a professor at American University, noted in an email that the delay is helpful not only for people who owe but also for “low-income folks who rely on volunteer income tax assistance programs to do their taxes, many of which have been temporarily shut down.”
Policymakers are encouraging taxpayers who are expecting a refund to file as soon as possible. IRS data through March 6 shows that almost 68 million Americans – roughly half of all filers based on previous years – have taken that advice. Nearly 53 million Americans (at least) have already gotten their refunds.
As for those who remain, on Wednesday, Bruckner had succinct advice in an interview with Yahoo Finance to those who expect a refund: ‘File right now.’
As for those who remain, Bruckner reiterated her succinct advice from an interview with Yahoo Finance to those who expect a refund: ‘File right now.’
Ben Werschkul is a producer for Yahoo Finance in Washington, DC.
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