Treasury Secretary Steven Mnuchin announced Tuesday that the Internal Revenue Service will defer $300 billion in IRS payments by 90 days, penalty-free.
According to Fortune, the IRS is still urging citizens to file their taxes by the April 15th deadline, especially if they’re expecting a refund. The move comes a week after President Trump urged the agency to extend the filing season deadline. The IRS has already begun processing returns, but the move helps the agency spread processing procedures out over time and keeps employees from potentially infecting one another.
The American Institute of CPAs has applauded the move saying the relief will help accountants and their customers.
“The AICPA appreciates the efforts being made by the Treasury Department and IRS to provide relief to the taxpaying public,” Edward Karl, VP of tax policy at the AICPAs said in a statement. “However, in light of the uncertainty and challenges caused by the spread of the Coronavirus pandemic, we are disappointed that the Treasury Department and IRS have yet to make an announcement on how relief would help millions of individuals and businesses, and to the CPAs who advise them.”
The National Association for the Self-Employed also praised the move adding the small business community has been greatly affected by the coronavirus.
“The COVID-19 pandemic is affecting every sector of our economy, especially those in our small business community,” said Keith Hall, NASE president and CEO said. “We applaud all continuing efforts in working on a host of financial support ideas for those impacted by the current situation.”
The coronavirus has upended the stock market, supermarkets, and sports in less than a month. To date, there are more than 190,000 cases and more than 7,500 deaths across the globe, including more than 500 cases across all 50 states in the US.