Treasury Dept. pushes back Tax Day until July 15

WASHINGTON — American taxpayers will have until July 15 to file their tax returns, Treasury Secretary Steven Mnuchin said Friday, a move intended to offer an additional reprieve to individuals and companies in the middle of the coronavirus pandemic.

The move follows an earlier decision by the Treasury Department, at the direction of President Donald Trump, to allow individuals and companies to defer tax payments until July 15.

Guidance released this week said individual taxpayers can defer up to $1 million of federal income tax, while companies can defer up to $10 million of tax payments for 90 days. The IRS plans to publish formal guidance on the tax filing delay Friday, a Treasury spokesman said.

Mr. Mnuchin has said that delaying tax payments will inject $300 billion of temporary liquidity into the U.S. economy. For those expecting a refund, he encouraged taxpayers to file by April 15 so that they can receive those funds.

The move by the Treasury Department and the IRS does not affect state income taxes, but some states have started announcing their own delays.

The National Taxpayers Union Foundation said Friday that the Treasury Department should also move to delay estimated tax payments that are due in midJune until later in the year.

“More relief is needed,” said Nicole Kaeding, vice president for policy promotion at the foundation.

Rep. Kevin Brady, of Texas, the top Republican on the House Ways and Means Committee, on Friday applauded the decision to delay Tax Day.

“This action will help protect seniors and others who are more vulnerable and may need extra time and help filing their taxes,” he said.

Rep. Bill Pascrell Jr., D-N.J., a member of the Ways and Means Committee, noted that the delay would be automatic for all Americans and that taxpayers would not need to request extensions.

“This is small but needed flexibility,” he said.

The latest IRS statistics show that 76,191,000 tax returns have already been filed for the current tax season.