The Trump administration plans to push the April 15 tax filing deadline to a later date in response to the coronavirus outbreak, Treasury Secretary Steven Mnuchin said Wednesday.
The delay will apply “to virtually all Americans, other than the superrich,” including most individuals as well as many small and medium-sized businesses, Mnuchin told reporters on Capitol Hill.
Under the plan, tax payments could be deferred to an as-yet-undefined date without penalty or interest, with the goal of keeping billions of dollars in the hands of consumers and business owners. Mnuchin said the filing delay “will have the impact of putting over $200 billion back into the economy, and that will create a very big stimulus.”
Treasury officials say they have the authority to waive penalties, The Wall Street Journal reported, and are looking into the possibility that the declaration of a national emergency would enable them to waive interest.
The delay could affect federal borrowing, since April is the biggest month for revenues as taxpayers send their payments to the IRS, with $333 billion coming in last year. The Treasury may have to borrow more to pay its bills on time, though Mnuchin said issuing more Treasury bills “shouldn’t be an issue.”