This article is from the source 'nytimes' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at https://www.nytimes.com/2020/03/11/us/politics/treasury-irs-delay-tax-day-coronavirus.html

The article has changed 3 times. There is an RSS feed of changes available.

Version 0 Version 1
Treasury Considers Delaying Tax Day Over Coronavirus Treasury to Recommend Delaying Tax Payments for ‘Virtually All’ Americans
(about 5 hours later)
WASHINGTON — The Treasury Department is considering delaying tax payments beyond the April 15 deadline, according to a person familiar with the plans, as taxpayers and the Internal Revenue Service brace for economic disruption from the spread of the coronavirus. WASHINGTON — Treasury Secretary Steven Mnuchin on Wednesday said he would recommend to President Trump that the Internal Revenue Service delay tax payments without penalty or interest for “virtually all Americans other than the superrich.”
Treasury and White House officials have been discussing the idea of extending the tax deadline over the past week as the administration considers measures to relieve financial pressure on individuals and businesses struggling with fallout from a virus that has closed schools, kept workers at home and disrupted supply chains. Mr. Mnuchin, testifying before House lawmakers, noted that all individuals are allowed to request tax payment extensions online but that this would be a special provision meant to help small and midsize businesses and “hardworking individuals” dealing with fallout from the coronavirus.
The I.R.S. could extend the tax payment deadline or waive penalties and interest for late payments. The delay would not apply to large corporations or the wealthiest Americans, Mr. Mnuchin said, but he did not elaborate on what the income or asset threshold would be for qualifying.
The plan, which was reported earlier by The Wall Street Journal, came as Democrats on the House Ways and Means Committee wrote to Charles Rettig, the I.R.S. commissioner, to ask for an update on the effect of the outbreak on tax filing season and for an evaluation of whether the agency needed to re-evaluate the traditional April 15 deadline. “That will have the impact of putting over $200 billion back into the economy and that will create a very big stimulus,” Mr. Mnuchin said, adding that the Treasury was already working to fund the initiative.
The effort is aimed at helping cushion the economic hit from the coronavirus, which is closing schools, sending workers home and disrupting everyday life for many Americans.
Treasury and White House officials had been discussing the idea of extending the tax deadline over the past week as the administration considers ways to relieve financial pressure on individuals and businesses.
The plan to delay the April 15 tax deadline came as Democrats on the House Ways and Means Committee wrote to Charles Rettig, the I.R.S. commissioner, to ask for an update on the effect of the outbreak on tax filing season and for an evaluation of whether the agency needed to re-evaluate the traditional April 15 deadline.
“We are concerned about the ability of the I.R.S. to provide taxpayer assistance and process returns, as well as the ability of taxpayers, free tax preparation sites, and tax professionals to meet the filing deadline,” the lawmakers wrote. They noted that “the I.R.S. has authority to extend the time for filing any return for six months or less and the authority to waive certain penalties upon a showing of reasonable cause.”“We are concerned about the ability of the I.R.S. to provide taxpayer assistance and process returns, as well as the ability of taxpayers, free tax preparation sites, and tax professionals to meet the filing deadline,” the lawmakers wrote. They noted that “the I.R.S. has authority to extend the time for filing any return for six months or less and the authority to waive certain penalties upon a showing of reasonable cause.”
The lawmakers also asked that the I.R.S. consider “the need for relief” from certain filing and payment fees and penalties for people affected by the coronavirus.The lawmakers also asked that the I.R.S. consider “the need for relief” from certain filing and payment fees and penalties for people affected by the coronavirus.
Asked after a congressional hearing last week about deferring or delaying tax payments, Treasury Secretary Steven Mnuchin acknowledged that the idea had been discussed but said it was “not something we’re considering at the moment.”
On Monday, as stock markets plunged, President Trump said the administration would consider economic stimulus options, including a payroll tax cut and other relief. During a White House briefing on the virus on Tuesday, Larry Kudlow, the director of the National Economic Council, said the administration could use executive authority to help individuals and businesses, noting that “we have leverage on tax deferral.”On Monday, as stock markets plunged, President Trump said the administration would consider economic stimulus options, including a payroll tax cut and other relief. During a White House briefing on the virus on Tuesday, Larry Kudlow, the director of the National Economic Council, said the administration could use executive authority to help individuals and businesses, noting that “we have leverage on tax deferral.”
Mr. Mnuchin is holding talks with Speaker Nancy Pelosi about a package of options for stimulating the economy. After a meeting with her on Tuesday afternoon, Mr. Mnuchin said that he was hopeful that a bipartisan agreement could be reached on legislation, but that he was also working on options that the Treasury Department could take unilaterally. Mr. Mnuchin is holding talks with Speaker Nancy Pelosi about a package of options for stimulating the economy. After a meeting with her on Tuesday afternoon, Mr. Mnuchin said that he was hopeful that a bipartisan agreement could be reached on legislation, but that he was also working on ways the Treasury Department could act unilaterally.
“There are things we can do on our own, and we’re exploring those, too,” Mr. Mnuchin said.“There are things we can do on our own, and we’re exploring those, too,” Mr. Mnuchin said.
Delaying tax day would also ease logistical problems that the I.R.S. could face if more government workers were forced to work remotely. The tax collection agency has service centers across the country that require staff to have face-to-face contact with the general public.Delaying tax day would also ease logistical problems that the I.R.S. could face if more government workers were forced to work remotely. The tax collection agency has service centers across the country that require staff to have face-to-face contact with the general public.
The Treasury Department and the I.R.S. did not immediately return requests for comment.
Alan Rappeport reported from Washington, and Emily Cochrane from New York.