Coinspeaker
Treasury and IRS to Extend Taxpayer Deadline by 90 Days Due to Coronavirus

It is now official, the taxpayer in the United States has been given a three-month extension to pay the income tax for the fiscal year 2019. According to Treasury Secretary, Steven Mnuchin, taxpayers can now delay paying their income taxes on as much as $1 million for up to three months. This is a grace period given due to the people and businesses greatly affected by coronavirus like in California.

However, Mnuchin said that ‘we encourage those taxpayers who can file their taxes to continue to file their taxes on April 15, because, for many Americans, you will get tax refunds.’ At the state level, some had already given their residents a relief of the deadline. 

In California, which has greatly been hit by the deadly virus, the residents were offered a 60-day delay to enable individuals and also businesses to file their returns on time. In Maryland, the residents have been additional time for certain business tax returns and also promises to extend the favor to individuals if the federal government continues with the tax delay measures.

Despite no official confirmation from the IRS, it has been cited closing down its field offices in Seattle, Northern California, Puerto Rico, and also in New York in order to help in the control of coronavirus. This was in accordance with directives given by the local public health authority on the hardest-hit areas by the coronavirus.

As a response to the ongoing coronavirus, IRS previously had advised that the high-deductible health plans to pay for the 2019 coronavirus related testing and treatment without jeopardizing their status. What this basically meant was that an individual with an HDHP which covers these cost may continue to contribute to a health saving account.

However, the service confirmed that the health plans which otherwise qualify as HDHPs will not lose their status. IRS was also quick to note that, similarly to the past event, all the vaccination costs may continue to count as preventive care and therefore, can be paid by an HDHP.

Coronavirus has been giving most government headache to tame it, due to the panic buy that most people have. Cases of confirmed coronavirus in the United States have now surpassed 4.000, wherein the deaths have hit 75 victims.

With almost all of the states having reported a coronavirus case, according to the center for disease control and prevention, IRS might continue extending the deadlines to avoid human contact. However, high hopes remain with biotech companies that are working on the vaccine to tame the virus.

Treasury and IRS to Extend Taxpayer Deadline by 90 Days Due to Coronavirus

152 +