Trump Administration Moves Tax Day to July 15

Treasury Secretary Steven Mnuchin announced that Tax Day will be moved to July 15 from April 15 because of the coronavirus outbreak.

The decision comes after widespread complaints over the administration's plan to give people who owe the IRS an additional 90 days to pay up, without penalties or interest, yet still require them to file their returns by April 15.

At President Donald Trump's direction, Mnuchin tweeted, “we are moving Tax Day from April 15 to July 15. All taxpayers and businesses will have this additional time to file and make payments without interest or penalties.”

You may be interested in changes to 163(j), which limits interest deductions on debt. Here is a short summary of that provision:

Interest limitation: The section 163(j) interest limitation is modified in two respects: (i) the limitation is increased to 50 percent (rather than 30 percent) of adjusted taxable income for taxable years beginning in both 2019 and 2020; and (ii) for taxable years beginning in 2020, the taxpayer can determine its limitation by using its ATI from 2019 (rather than 2020).