Tax Relief Update - COVID-19

March 19, 2020

A group of senators, led by Senator John Thune, R-SD, introduced bipartisan legislation to extend the tax-filing deadline from April 15 to July 15 after guidance from the Treasury Department and the Internal Revenue Service extended only the tax payment deadline in response to the novel coronavirus pandemic.

The Tax Filing Relief for America Act would provide for basically the same timeline as the Treasury and IRS guidance that was issued this week, which allowed taxpayers to avoid extra interest and penalties if they pay their taxes by July 15. But the official guidance would still require taxpayers to file their tax returns by April 15. The legislation would enable taxpayers, along with their preparers, extra time to file their taxes without filing for an extension.

The bill aims to provide more clarity to taxpayers and enable those who need to travel to a secondary location to acquire documents or meet with an accountant to follow the Center for Disease Control and Prevention’s guidelines about the coronavirus, while preserving the right of taxpayers who are owed refunds to file their tax returns and get their money back.

“Treasury’s decision to extend the tax payment deadline from April 15 to July 15 was an important first step, but it only makes sense to also extend the tax filing deadline itself,” Thune said in a statement Thursday. “There’s enough confusion amid this outbreak as it is, so I believe it’s incumbent upon Congress to provide as much clarity and relief as possible to American families. While I’m working with my colleagues on additional swift and bold action to respond to the ongoing coronavirus outbreak, this is the least we can do, and I hope my colleagues will support this effort.”