Security Awareness Week Wraps Up
The National Tax Security Awareness Week has finished its focused campaign to help tax professionals and taxpayers protect themselves from security risks. Issues for the week included basic steps that should be taken to avoid scams and identity theft schemes taking advantage of holiday shopping, the approaching tax season and coronavirus concerns; the multi-factor authentication that will be available on all 2021 online tax preparation products; the expanded Identity Protection PIN Opt-In Program for all taxpayers who can properly verify their identities; security advice for businesses; and more security advice for tax professionals.
Interest Rates To Remain The Same
The IRS has announced that interest rates for under- and overpayments will remain the
same for the calendar quarter beginning January 1, 2021. The rates will continue at three (3) percent for overpayments (two (2) percent in the case of a corporation); one-half (0.5) percent for the portion of a corporate overpayment exceeding $10,000; three (3) percent for underpayments; and
five (5) percent for large corporate underpayments.
Wage Statements Due February 1, 2021
The IRS reminds employers that Forms W-2 and other wage statements must be filed with the Social Security Administration no later than February 1, 2021, to avoid penalties and reduce fraud. Normally, such statements are due January 31, but since that date falls on a Sunday, the deadline has been pushed to the next business day. Copies to employees are also due by then, as well as Forms 1099-MISC and 1099-NEC.
Final QTF Regulations Issued
The IRS and Treasury have issued final regulations on the deduction for qualified transportation fringe (QTF) and commuting expenses following changes made by the Tax Cuts and Jobs Act (TCJA). These final regulations address expenses related to QTFs, including providing guidance on determining the amount of QTF parking expenses that is nondeductible, and the disallowance of the deduction for expenses of transportation between an employee’s home and workplace.