Treasury Secretary Steven Mnuchin said on Tuesday that President Trump has authorized the deferral of $300 billion in IRS payments, as the U.S. economy grapples with fallout from the coronavirus pandemic.
“We encourage those Americans who can file their taxes to continue to file their taxes on April 15, because for many Americans, you will get tax refunds,” Mnuchin told reporters at a coronavirus update briefing.
Mnuchin said individuals who owe a payment to the IRS can defer up to $1 million.
“The reason why we’re doing $1 million is [because] that covers lots of pass-throughs and small businesses,” the Treasury secretary said.
Corporations will be allowed to defer $10 million, interest- and penalty-free, for 90 days.
“All you have to do is file your taxes,” Mnuchin added. “You’ll automatically not get charged interest and penalties.”
The administration is also considering sending checks to Americans as a way to combat the economic cost of the outbreak of the virus. States nationwide have forced bars, restaurants, casinos, theaters and other venues to close as a way to combat the spread of disease, leaving many workers unable to collect a paycheck.
"We're looking at sending checks to Americans immediately," Mnuchin said. "Americans need cash now, and the president wants to get cash now. I mean now, in the next two weeks."
Stocks rose during the briefing after cratering nearly 3,000 points at Monday’s close.