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BUSINESS Thursday 19 March 2020
A25

FDIC warns of Q&A: What does 90-day tax

scams saying banks in payment delay mean for filers?

trouble from outbreak By SARAH SKIDMORE SELL

and MARTIN CRUTSINGER
NEW YORK (AP) — One of that banks are limiting ac- AP Business Writers
the nation's bank regula- cess to deposits or that The Trump administration
tors is urging Americans there are security issues has announced that most
not to withdraw large sums with bank deposits. The individuals and businesses
of cash and to beware of scammers, along with try- will be allowed to delay
fraudsters claiming that ing to sow distrust, are also paying their federal tax
banks are limiting custom- after bank account and bills for 90 days as part of
ers' access to their money. other personal information. an emergency relief plan
The Federal Deposit Insur- The FDIC insures every de- amid the coronavirus pan-
ance Corporation issued positor up to $250,000 in demic.
a statement Wednesday each bank where they hold Some questions and an-
warning about an increase deposits. No depositor has swers about the delay and This July 24, 2018, file photo shows a portion of the 1040 U.S.
in scams trying to sow dis- lost money since the FDIC its potential impact on the Individual Income Tax Return form.
trust in the U.S. financial was created in 1933, in re- U.S. economy. Associated Press
system while the nation is sponse to the large number ___
dealing with the fallout of of bank failures and bank DO I STILL NEED TO FILE? cluded. ___
the coronavirus pandemic. runs in the early years of the Yes. However, because details DOES THIS APPLY TO MY
Many banks have short- Great Depression. The details on the program are still pending, it's unclear STATE TAXES TOO?
ened branch hours or are "Customers' deposits re- are still scant. But as of now, if the delay applies to trusts No. Check with your state
pushing customers to use main safe in these banks, taxpayers need to file their or whether people who tax authority to see about
online banking exclusively as does customer access federal tax returns by the make quarterly payments any changes to due dates.
to avoid transmission of to their funds. Banks con- traditional April 15 dead- on their taxes will still need Some are not extending
the virus. This has led more tinue to offer ATM, mobile, line. The 90-day extension to make that first payment their deadline, others are
Americans to pull cash out or online banking services, is solely for the money that by April 15, said Lance following the federal mod-
of ATMs in some communi- and many continue to is due. Those delayed pay- Christensen, a partner at el and others still are set-
ties. Darrin Williams, CEO provide services via drive- ments are now due July 15. the accounting firm of Mar- ting their own deadlines.
of Southern Bancorp, said through window," the FDIC However, taxpayers who golin Winer & Evens. California, for example, has
the bank had ordered 30% said in a statement. are facing difficulty filing ___ bumped its date for filing
more cash to keep up with While the stock market has on time always still have WILL I BE PENALIZED FOR and payment of state tax-
withdrawals. fallen sharply and the U.S. the option to request a six- WAITING TO MAKE PAY- es to June 15.
The FDIC says it has seen economy could potentially month extension. Visit the MENTS? ___
an uptick in calls, text mes- fall into a recession, banks IRS website for more de- No. During this unprece- HOW WILL THIS HELP THE
sages, letters and emails are not at risk of failure. The tails. dented delay, individuals ECONOMY?
from scammers pretending FDIC's "troubled bank" list ___ and corporations will not It's unclear.
to be FDIC employees, us- is at an all-time low, and WHO GETS TO WAIT TO PAY? be subject to interest or Treasury Secretary Steven
ing names of people who bank capital at every bank Treasury Secretary Steven penalty payments. Mnuchin estimates that tax-
actually work at the FDIC. is higher than it was prior to Mnuchin said individuals ___ payers will be able to keep
The scammers falsely claim the Great Recession.q who owe less than $1 mil- WHAT IF I AM EXPECTING A $300 billion in the economy
lion will be able to delay REFUND? for now. And some tax and
paying. Corporations will If you are expecting a re- economic experts say any
be able to defer payment fund, continue to file as extra cash in the hands of
on taxes due up to $10 mil- usual. As of now, the IRS is Americans is helpful be-
lion. Mnuchin said only the still processing returns and cause many will be strug-
"super rich" would be ex- sending out refunds. gling to get by. q