Trump Administration Greenlights Deferral On $300Bln In US Tax Payments Amid Pandemic

WASHINGTON (Pakistan Point News / Sputnik - 19th March, 2020) The Trump administration issued guidelines on Wednesday to defer some $300 billion in tax collections for an additional three months, the Treasury Department said in a statement.

"All individual and other non-corporate tax filers (will be allowed) to defer up to $1 million of Federal income tax (including self-employment tax) payments due on April 15, 2020, until July 15, 2020, without penalties or interest," read the statement, which said corporate taxpayers paying up to $10 million in federal tax payments would get similar waivers.

Treasury Secretary Steve Mnuchin also urged taxpayers to file their returns on time for the April 15 deadline set by Internal Revenue Service (IRS).

"Americans should file their tax returns by April 15 because many will receive a refund," Mnuchin said in the statement. "Those filing will be able to take advantage of their refunds sooner. This deferment allows those who owe a payment to the IRS to defer the payment until July 15 without interest or penalties. Treasury and IRS are ensuring that hardworking Americans and businesses have additional liquidity for the next several months."

The deferment in tax collection is among a raft of stimulus measures worth $1.3 trillion in total planned by the Trump administration to mitigate the economic effects of the pandemic, which has infected more than 7,500 Americans and killed at least 120, while shutting down large swathes of the economy.