Trump authorizes deferral of $300B in tax payments, Mnuchin says

Individuals can defer up to $1M, corporations can defer $10M

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.

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“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.

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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.

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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.”

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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."

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Stocks rose during the briefing after cratering nearly 3,000 points at Monday’s close.