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January 29, 2021 Newsletter


Here are your Articles for January 29, 2021.

2021 tax filing season begins Feb. 12; IRS outlines steps to speed refunds during pandemic
The Internal Revenue Service announced that the nation’s tax season will start on Friday, Feb. 12, 2021, when the tax agency will begin accepting and processing 2020 tax year returns.

The Feb. 12 start date for individual tax return filers allows the IRS time to do additional programming and testing of IRS systems following the Dec. 27 tax law changes that provided a second round of Economic Impact Payments and other benefits.


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Important Reminders Before Filing your 2020 Tax Returns
Following an unpredictable year with many changes and challenges, the Internal Revenue Service today shared important reminders for taxpayers who are about to file their 2020 federal tax returns.


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Businesses have Feb. 1 deadline to provide Forms 1099-MISC and 1099-NEC to recipients
The Internal Revenue Service today reminded businesses and other payors that the revised Form 1099-MISC, Miscellaneous Income PDF, and the new Form 1099-NEC, Nonemployee Compensation PDF, must be furnished to most recipients by February 1, 2021.


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All taxpayers now eligible for Identity Protection PINs
The Internal Revenue Service today expanded the Identity Protection PIN Opt-In Program to all taxpayers who can verify their identities.

The Identity Protection PIN (IP PIN) is a six-digit code known only to the taxpayer and to the IRS. It helps prevent identity thieves from filing fraudulent tax returns using a taxpayers’ personally identifiable information.

“This is a way to, in essence, lock your tax account, and the IP PIN serves as the key to opening that account,” said IRS Commissioner Chuck Rettig. “Electronic returns that do not contain the correct IP PIN will be rejected, and paper returns will go through additional scrutiny for fraud.”

The IRS launched the IP PIN program nearly a decade ago to protect confirmed identity theft victims from ongoing tax-related fraud. In recent years, the IRS expanded the program to specific states where taxpayers could voluntarily opt into the IP PIN program. Now, the voluntary program is going nationwide.


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Treasury issues millions of second Economic Impact Payments by debit card
Starting this week, the Treasury Department and the Internal Revenue Service are sending approximately 8 million second Economic Impact Payments (EIPs) by prepaid debit card.

These EIP Cards follow the millions of payments already made by direct deposit and the ongoing mailing of paper checks that are delivering the second round of Economic Impact Payments as rapidly as possible.


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Economic Impact Payments on their way, visit IRS.gov instead of calling
The Internal Revenue Service today urged people to visit IRS.gov for the most current information on the second round of Economic Impact Payments rather than calling the agency or their financial institutions or tax software providers. IRS phone assistors do not have additional information beyond what’s available on IRS.gov.


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Digital Banking is Revolutionizing the Banking Industry
Consumers are migrating in droves to digital banking services, especially since the onset of COVID-19. If you’re still trying to operate as you have for years with a traditional banking arrangement, this might be a good time to listen to what consumers of digital banking services have to say. Here’s a fresh look at how you can work with financial institutions and other lenders without leaving your office or home office.


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Beware of Scams Surrounding Long-Term Care Coverage
There’s no question that long-term care is extremely expensive. That’s why, when shopping for long-term care coverage, it is important to make sure that the plan is a comprehensive one and that you are getting the plan you paid for. Naturally, consumers want to find a good deal. Unfortunately, they may fall prey to ever-present scam artists, seeking to steal whatever they can from victims, including vulnerable senior citizens.


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Multistate Resident? Watch Out for Double Taxation
Contrary to popular belief, no federal law prohibits multiple states from collecting tax on the same income. This article raises some important points to keep in mind for those who maintain residences in more than one state (or may soon do so). We’ll also look at some ways an individual can establish domicile in a new state.


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Estate Tax Planning Tips for Married Couples
The Tax Cuts and Jobs Act significantly increased the unified federal estate and gift tax exemption and the generation-skipping transfer tax exemption. As a result, fewer estates will be subject to the 40% estate and gift tax rate. But for many people, there are still good reasons to draft or review their estate plan before year end. Here are some proactive planning moves for married people to consider. 


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