FILE – In this March 5, 2019, file photo, Sen. Rand Paul, R-Ky., speaks during a Senate Committee on Health, Education, Labor, and Pensions hearing on Capitol Hill in Washington. (AP Photo/Carolyn Kaster, File)
Because of the drastic measures being taken to combat the spread of the Wuhan coronavirus, governments at the local, state and federal levels are floating ways they believe will ease the financial burden now placed on American workers and businesses, some of who are already seeing reduced hours to no hours and revenue losses, respectively. Many employees face layoffs in the days and weeks to come, and businesses face closure.
Most of the ways involve mandating an extension of paid leave, giving every American at least $1,000 a month, providing additional funds to states for unemployment benefits, and providing aid to the small businesses who will be hurt the most by the economic downturn.
But Sen. Rand Paul (R-KY), who is among the more vocal anti-IRS Republicans in the Senate, had a different idea in mind when he took to the Twitter machine on Monday. His suggestion? Extend the tax filing deadline 3 months and waive the interest and late fees:
Today I’m calling on the IRS to move our tax filing deadline from April 15 to July 15, and to waive any interest and fees for late payment. This will allow those who owe money not to have to send it during our current situation.
— Senator Rand Paul (@RandPaul) March 16, 2020
Today, the Treasury Department announced they would do just that:
Taxpayers will get a three-month reprieve to pay the income taxes they owe for 2019, Treasury Secretary Steven Mnuchin said on Tuesday at a news conference.
As part of its coronavirus response, the federal government will give filers 90 days to pay income taxes due on up to $1 million in tax owed, Mnuchin said in Washington. The reprieve on that amount would cover many pass-through entities and small businesses, he said.
Corporate filers would get the same length of time to pay amounts due on up to $10 million in taxes owed, Mnuchin said.
During that three-month deferral period, taxpayers won’t be subject to interest and penalties, he said.
Mnuchin also advised that people still try to go ahead and file their tax returns by April 15th, “because for many Americans, you will get tax refunds.”
It’s also a good idea to find out if your state will be extending the filing deadline, too.
While we’re on the subject of taxes, I have another suggestion to help out the American worker: For those who work from home for themselves, how about a tax break on this year’s taxes? Full-time freelancers pay a crap-ton in taxes quarterly, and that money could be used towards more important things, like paying for their expensive health insurance.
Any other suggestions, y’all?