Here's How the Wuhan Virus Could Impact Your Taxes

Posted: Mar 11, 2020 10:50 AM
Here's How the Wuhan Virus Could Impact Your Taxes

Source: AP Photo/Charles Krupa, File

President Donald Trump on Monday announced his plans to work with Congress to implement measures to mitigate the economic fallout that has taken place as a result of the Wuhan virus. Trump discussed a payroll tax cut and protections for hourly workers, something Democratic leadership took issue with. 

The United States Treasury Department is looking at extending the April 15 tax deadline, although the details are still being worked out.

As it currently stands, individuals can request an extension on their taxes, giving them until October to file their returns as long as they are paid up by April 15.

The Wall Street Journal explained the benefit this could provide individuals and businesses:

Extending the tax filing deadline would effectively act as a bridge loan for individuals and businesses facing disruptions from the virus. Treasury officials are still considering how far the filing deadline may be pushed back and who would be eligible for the extension, according to the person familiar with the discussions.

Officials believe they have the legal authority to waive penalties on late tax payments if they move back the filing date and are exploring whether they have the ability to waive the interest under an emergency disaster declaration.