OFF THE RECORD
SPECIAL COVID-19 ALERT
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Dear Clients and Friends!
It has been some time since we've sent out an alert regarding COVID, but today we reach out with positive news for Maryland and our economy.
As you probably know, Governor Hogan has lifted many restrictions, effective 5:00 PM on Friday, March 12th, nearly one year since the onset of the pandemic. We are hopeful for continuing positive news as our community gradually begins to return to something resembling "normal".
You can reference our dedicated COVID-19 section on our website for previous updates and links to prior alerts and newsletters. This page can also be easily accessed from our homepage at www.darslaw.com.
Please continue to stay safe and healthy.
Very truly yours,
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Paul G. Skalny
Managing Director
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UPDATE ON MARYLAND'S EASING
OF COVID RESTRICTIONS
Governor Hogan announced the easing of many COVID-related restrictions in Maryland on Tuesday, March 9, 2021 (click to view the slide show), just days after the one year anniversary of the declaration of a state of emergency in Maryland as a result of the COVID-19 outbreak. Effective as of 5:00 p.m. on Friday, March 12, occupancy limits will be lifted for a variety of establishments, including religious facilities, retail establishments, personal services establishments, such as hair salons and tanning salons, indoor recreation establishments, bars and restaurants, fitness centers, gaming facilities, and racing facilities. While occupancy limits on restaurants and bars are being lifted, only seated customers may be served, and restaurants and bars must maintain physical distancing requirements. The occupancy limits for convention and banquet facilities, and indoor and outdoor venues such as theaters, concert halls, cinemas, and sporting arenas, will increase to 50% of the facility’s maximum occupancy. Adult day care centers may also reopen with appropriate safety measures in place. Masking, social distancing, and other safety protocols remain in effect for all establishments.
Marylanders planning out-of-state travel will be pleased to learn that all quarantine requirements and other restrictions on out-of-state travel will also be lifted, although a travel advisory remains in effect, and residents are still encouraged to have a COVID test after returning from out-of-state travel.
While state-mandated occupancy restrictions for many establishments are being eased, local governments still have the authority to keep stricter requirements in place. The announcement seems to have come as a surprise to local governments, who are now re-evaluating their regulations in light of the new orders. Howard County announced that it will review Governor Hogan’s guidance, while Montgomery County Executive Marc Elrich plans to provide a media briefing tomorrow (March 11).
The Governor’s latest orders can all be found here.
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WHAT TO DO WHEN YOU RECEIVE A
STIMULUS CHECK FOR THE DECEASED
Millions of Americans received stimulus checks in 2020 based on their 2018 or 2019 income tax returns. With the third round of stimulus payments approved by Congress and 2020 income tax returns due soon, can an individual who died in 2020 receive a stimulus check or receive a rebate on his or her 2020 final income tax return?
In the spring of 2020, the IRS said that stimulus checks issued after someone passed away in 2020 had to be returned to the IRS. However, in December 2020, the instructions were clarified and the IRS stated that only taxpayers who died before January 1, 2020 were ineligible to receive the 2020 stimulus payments. So, if a check was issued to an individual who died before January 1, 2020, it should be returned to the IRS.
However, if the individual died after January 1, 2020, he or she is still eligible for the stimulus payments if he or she was otherwise eligible based on income limitations. If a check or direct deposit was not received in 2020, or was returned under the IRS’s initial instructions, the rebate can be claimed on the deceased individual’s 2020 income tax return as the Recovery Rebate Credit.
Taxpayers who died in 2020 do not qualify for the third stimulus payment. If you receive a third stimulus payment for a taxpayer who died in 2020, it should be returned to the IRS. For married taxpayers who received a joint stimulus check, if one taxpayer is deceased, half of the third stimulus check or direct deposit must be returned.
If a stimulus check was received for a deceased taxpayer who does not qualify for the payment, the payment should be returned to the IRS. If a paper check was mailed, there is a box on the envelope you can check to indicate that the taxpayer is deceased. If you threw out the envelope, you can simply write “void” on the back of the check and send it to the appropriate address. The address to which the check should be returned are based on the state of residence of the decedent. More information can found under Topic A, Q A-5.
If the decedent received a direct deposit to a bank account or you already cashed the paper check, you should submit a personal check or money order made payable to “U.S. Treasury” to the appropriate address and write “2020EIP” and the social security number of the taxpayer in the memo section. You should also enclose a letter stating that the taxpayer died before January 1, 2020 for the first two stimulus checks or before January 2, 2021 for the third stimulus check and that is why you are returning it to the Treasury.
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