The National Taxpayers Union Foundation today applauded the announcement that the Treasury Department will be postponing this year’s April 15th tax payment deadline for many taxpayers and urged administration officials to provide taxpayers with greater clarity on the extent and breadth of the delays.
The 90-day postponement of some tax payments is a much-needed reprieve for individuals and businesses currently feeling the economic squeeze of the COVID-19 pandemic in the United States. NTUF has been an early advocate for this kind of action from the Treasury Department, as it became clear that the pandemic was wreaking havoc on businesses and consumers across the country.
As NTUF Vice President of Policy Promotion and Economist Nicole Kaeding explained last week, the Treasury Secretary has the broad authority to give this kind of extension. Delaying tax payments for 90 days and waiving interest and penalties will help countless individuals and small businesses and provide them with additional liquidity needed to get through these difficult times.
NTUF also encouraged Treasury to promptly release additional details about how this delay will be implemented. Crucial questions remain, such as whether the delay applies to 2020 estimated payments, taxpayers currently contesting their payments with the Internal Revenue Service (IRS) and the Tax Court, and whether tax filers will need to proactively apply for a delay or whether it will be automatically granted.
However, NTUF further urged Treasury Secretary Steven Mnuchin to extend the tax filing deadline as well to ease compliance burdens for taxpayers and tax professionals, and to reduce strain on IRS workers dealing with work disruptions.
“The Secretary’s announced delay is encouraging for taxpayers. Delaying tax payments can provide individuals and businesses with critical economic relief at this time,” Nicole Kaeding said. “However, the details matter here to ensure its full impact is felt. Treasury should also consider delaying tax filing deadlines too.” she continued.
To discuss the tax filing delay with NTUF’s Nicole Kaeding, please contact Kevin Glass, NTU’s Vice President of Communications, at 703-299-8670 or at firstname.lastname@example.org.