The Internal Revenue Service will push back tax day to July 15 from April 15 in order to give American taxpayers relief amid the coronavirus pandemic that has crippled the U.S. economy.
Individuals and businesses will have an extra three months to file and make payments without incurring interest or penalties, said Treasury Secretary Steve Mnuchin.
Individual tax returns are being extended to the July date for returns up to $1 million. Corporations are exempted to the new date for up to $10 million of their 2019 tax due.
These relief efforts are only applicable to federal taxes. For now, state taxes will be due at their normal dates.
Taxpayers who are owed money back from the federal government will have until the normal April 15 date to file.
“Americans should file their tax returns by April 15 because many will receive a refund. Those filing will be able to take advantage of their refunds sooner,” said Mnuchin. “This deferment allows those who owe a payment to the IRS to defer the payment until July 15 without interest or penalties. Treasury and IRS are ensuring that hardworking Americans and businesses have additional liquidity for the next several months.”
The IRS estimated that Friday's announcement would result in about $300 billion in additional liquidity for the economy in the near-term. The agency also said that it will continue to work with Congress on further legislation to provide more relief for Americans.
Stock markets were holding onto gains in another volatile day of trading on Friday. Stocks are suffering through their worst month in three decades.