SEE NEW ARTICLE FROM MARCH 20, 2020 FOR UPDATED INFORMATION
Today, the White House announced individual taxpayers will get an additional 90 days to pay federal income taxes due for 2019. Like the recent student loan interest waiver, there is no clarity yet on how this will be implemented. The plan is to waive interest and penalties for 90 days on taxes due by April 15, 2020. It is anticipated that taxpayers still need to file taxes on time or request appropriate extensions. We await the details from the IRS.
Some states have previously announced tax filing relief for taxpayer affected by the coronavirus pandemic. For instance California extended some tax filings 2 months from April 15 to June 15, 2020. This may be extended to fall in line with the 90 day federal program.
There are many details to be sorted out. However, the federal and state policies will immediately keep cash in the private economy for a longer period of time before being paid to the government. This will allow money to stay in the economy, which are the stated goals of the recent efforts by the White House to lessen the impacts of the coronavirus pandemic on the United States economy.