Washington Looks To Move Tax Deadline In Wake Of Coronavirus

Apparently a medical disaster has performed a political miracle. Democrats and Republicans are agreeing to consider moving back the April 15 tax deadline in the wake of coronavirus. The US had a reported 1,016 COVID-19 cases today and 31 deaths, according to information released by state departments of health and collected by Worldometer.

Reports of a possible tax extension came amid talks between the White House and Congress about a fiscal stimulus plan to sap the economic impact of the coronavirus outbreak, New York Post reported.

President Donald Trump's Treasury Department has not finalized its decision, and officials have yet to determine how far to push the deadline and who would be eligible for the extra time to file.

Democrats on the House Ways and Means Democrats requested that Internal Revenue Service (IRS) Commissioner Charles Rettig provide the committee with an update on the impact of the coronavirus on the tax return filing season in a letter filed Tuesday.

"We are concerned about the ability of the IRS to provide taxpayer assistance and process returns, as well as the ability of taxpayers, free tax preparation sites, and tax professionals to meet the filing deadline,” the letter said. “The IRS has authority to extend the time for filing any return for six months or less and the authority to waive certain penalties upon a showing of reasonable cause.”

Taxpayers typically must pay their taxes by the mid-April deadline to avoid penalties or interest charges. The Treasury Department may delay the filing deadline to give individuals a break as they grapple with the virus that has sickened more than 1,000 people in the US.

The deadline would be part of a stimulus plan the White House is working with Congress on to dampen the economic impact of the viral outbreak.

Trump has not released specifics of a plan but has hinted at a payroll tax cut and assistance for the struggling airline and cruise ship industries will be included.

Meanwhile, House Speaker Nancy Pelosi is expected to ask or more unemployment insurance, food security, paid sick leave and free coronavirus testing. Treasury Secretary Steven Mnuchin will represent the White House and Senate Republicans and handle negotiations over a final stimulus plan with Pelosi.