The Trump administration has postponed Tax Day in America by three months because of the coronavirus outbreak.
Treasury Secretary Steven Mnuchin took to Twitter on Friday to announce the update.
At @realDonaldTrump’s direction, we are moving Tax Day from April 15 to July 15. All taxpayers and businesses will have this additional time to file and make payments without interest or penalties.
— Steven Mnuchin (@stevenmnuchin1) March 20, 2020
“At @realDonaldTrump’s direction, we are moving Tax Day from April 15 to July 15. All taxpayers and businesses will have this additional time to file and make payments without interest or penalties,” Mnuchin tweeted.
“I encourage all taxpayers who may have tax refunds to file now to get your money,” Mnuchin added.
This news is a shift from previous guidance where the White House said they would defer tax payments for 90 days, but that Americans still have to file by April 15, reported CNN.
The latest news is an attempt to keep all Americans from immediately worsening the economic hardships brought on by the pandemic. The coronavirus has already caused harm to major industries as well as small businesses and now economists have predicted a huge spike in unemployment claims, according to CNN.
Congress has been working on a stimulus package to help in the short term. For example, Senate Democrats have come up with a plan to bring relief to the tens of millions of Americans who owe a combined $1.5 trillion in federal student loans.
Senate Democrats are also proposing slashing a minimum of $10,000 in debt for all federal student loans, according to The Washington Post.
Under the plan, wage garnishments, tax refund seizure and reductions in Social Security benefits to repay past debt would be halted. In addition to this, President Trump’s order last week waiving interest on federal education loans would still be applied.
“The coronavirus outbreak brought with it crushing economic uncertainty, and students and borrowers need targeted, quick relief from payment burdens,” Senate Minority Leader Charles E. Schumer (D-N.Y.), said as he introduced his plan on Thursday, alongside Senator Patty Murray (D-Wash.), Elizabeth Warren (D-Mass.) and Sherrod Brown (D-Ohio).