Amidst a global health crisis that has brought the world to a metaphorical halt, two certainties endure: death and taxes. Yet, there’s a slight respite from the Internal Revenue Service (IRS) this year for those facing a tax bill.
This week, the government declared that most Americans will receive a 90-day extension on their tax payment deadlines. This is welcome news for individuals who owe money but are grappling with income loss due to reduced work hours or complete job loss.
Treasury Secretary Steven Mnuchin unveiled these plans on Tuesday. However, it’s important to note that April 15 remains the final day to file taxes without incurring penalties. While you can postpone payment of up to $1 million in taxes owed, filing by the standard deadline is still mandatory. If necessary, you can still request an extension to delay filing until October. Some states are also extending their tax payment deadlines, but it’s advisable to confirm the specifics for your location.
Mnuchin urged Americans to file their taxes promptly, especially if they anticipate a refund. “We don’t want you to miss out on those tax refunds,” he emphasized during the press conference. Despite the announcement, the IRS has yet to provide additional details, so it’s prudent to stay vigilant for updates, particularly if you require this payment extension.
For further assistance on preparing and filing your 2019 taxes, refer to our comprehensive guide available here.
Canadian readers will find that the Canada Revenue Agency (CRA) is implementing similar changes to ease any tax-related burdens.