Treasury Secretary Steven Mnuchin announced an automatic 90-day extension of the deadline for U.S. individuals and companies to pay any taxes owed as part of an effort to combat the financial fallout from the Covid-19 pandemic.
Individuals will be able to delay up to $1 million in liabilities, while corporations will be able to delay payments of up to $10 million.
Under the plan, taxpayers still have to file their forms by April 15, but no interest or penalties will be charged if taxes owed are not paid at that time (Watch our video on "Commonly Overlooked Tax Deductions and Credits").
The move is expected to provide about $300 billion in liquidity to the economy, Bloomberg reported.
U.S. stocks rose Tuesday on moves by Washington D.C. to get money into the hands of consumers who are facing a rapidly contracting economy as the coronavirus forces virtual lockdowns of urban regions and even whole states.
Residents of the San Francisco Bay Area were told by county health officials to shelter in place for the next three weeks as part of efforts to slow the spread of the coronavirus.
New York City mayor Bill DeBlasio has warned the city's residents to prepare for a similar order within 48 hours.
After weeks of testing delays, the U.S. has begun following the lead of China, South Korea and many countries in Europe in establishing severe restrictions on public interactions to slow the spread of the virus. The moves are part of an effort to reduce the rate of new infections enough to avoid overwhelming the healthcare system.
Coronavirus has forced the virtual shutdown of Italy and Spain as cases of Covid-19 have ravaged their populations in recent weeks.