On December 27, 2020, the President signed into law The Consolidated Appropriations Act, 2021, which is made up of the omnibus spending bill for the 2021 federal fiscal year and also $900 billion of stimulus relief for the COVID-19 pandemic in the United States. According to Section 210 of the stimulus relief package, there will be a “temporary allowance of full deduction for business meals.”
The IRS has issued Tax Tip 2020-163, which provides guidance and suggestions on how to best ensure taxpayers’ security and to keep people safe online. As the world becomes increasingly digital and we spend more time online, while navigating new technologies, everyone should be mindful of security risks, tax scams, consumer alerts, and fraudsters.
For our clients who in previous years issued a 1099-MISC (reported in box 7) to independent contractors, vendors, freelancers & consultants, beginning Tax Reporting Year 2020, you must issue and file a Form 1099-NEC (nonemployee compensation) to these recipients instead. The other traditional uses for a Form 1099-MISC (i.e. rents, gross proceeds paid to an attorney, other income payments) remain in effect and Form 1099-MISC will continue to be used for these purposes.
As of September 21, 2020, Maryland Division of Unemployment Insurance ("DUI") will be launching a new and modernized IT system. The existing system will shut down on September 16, 2020 at 5pm. Employers and third party payroll agents that process quarterly reports and maintain the current unemployment insurance account can now activate the account in the BEACON 2.0 system.