In news that will delight millions of Americans - at least those who end up owing Uncle Sam a tax bill instead of getting a refund - the US government will postpone the April 15 tax-payment deadline for tens of millions of taxpayers by 90 days, giving Americans roughly 3 months pay their 2019 income-tax bills in an unprecedented move.
The IRS, under the authority of President Trump’s national-emergency declaration, will waive interest and penalties as well, Treasury Secretary Steven Mnuchin said at the White House Tuesday. The delay will be available to people who owe $1 million or less and corporations that owe $10 million or less.
The extension was granted to give taxpayers a financial cushion as households and businesses cope with the sudden crash in economic activity caused by the coronavirus outbreak which has brought the US economy to a halt. The move could provide households with hundreds of billions of dollars in temporary liquidity, Mnuchin said last week in previewing the government’s actions.
"We are going to use all the tools we have,” Mr. Mnuchin said on Tuesday. “And what tools we don’t have, we’re going to go to Congress."Extend this through November 15th, 2020, and President Trump all but guaranteed re-election.
Never let a crisis go to waste.
April 15 -- IRS:
- 74% of Americans get refunds
- those owing $1 million or more are not exempt; thus the "one-percenters" are not exempt
- that leaves at most 25% that would have owed "a bit" more -- the vast majority of taxes due is withheld automatically, and many of the top 25% income earners pay taxes quarterly
- this 90-day extension will cause almost no problem for the US, and considering that the IRS is probably seeing a lot of absenteeism, this was the smart thing to do
- and 90-day extensions, taxes will still be due in this fiscal year
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