Some taxpayers will not need to submit your Declaration until April 15, 2020. This was stated by the President of the United States Donald trump, he said it was a measure to reduce economic impact due to the coronavirus. About it writes USA Today.
“I will instruct the Department of the Treasury to postpone tax payments without interest or fines for individuals and businesses that were adversely affected by the coronavirus,” said trump.
He did not specify who will get the extension and how much.
But the head of the Department of Finance Steve Mnuchin stated that any extension will help “small and medium businesses and hard-working people”, strongly affected by the wide spread of the virus.
Mnuchin said the extension would add billions of dollars to the economy, giving businesses and individuals more cash.
“This action will provide the economy more than $200 billion of additional liquidity,” said trump.
But it can also mean that the government will have to increase borrowing in the short term to pay your bills before all declarations will be filed.
According to the administration, the extension does not require approval of Congress.
Trump said that he is using “emergency powers”.
Democrats said the Tax office (IRS) that they are concerned that people may need more time to submit the Declaration.
The President and his team are trying to formulate a plan of economic incentives.
This step came after the US there were more than 1,000 cases COVID-19.
Individuals usually have to pay taxes by April 15 or they will be fined. The IRS also provides taxpayers the opportunity to apply for a six-month reprieve.
The IRS may be forced to borrow money after the decision to postpone tax payments. About $333 billion in individual taxes were collected in April 2019.
Democrats wrote a letter to the IRS about the impact of coronavirus on the season of tax filing. The lawmakers requested “further evaluation” on the need of the extension of 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 comply with the deadlines for applications,” wrote the legislators.
The recently identified coronavirus has infected almost 130,000 people worldwide and led to the deaths of more than 4717 people.