On November 6, 2021, the $1+ trillion Infrastructure Investment and Jobs Act, H.R. 3684, passed through the House and Senate. On November 15, President Biden signed the act which will provide historic investment in our nation’s transportation, energy grid, internet connectivity, and more. The majority of the tax provisions in the spotlight are still making their way through Congress, and are within the Build Back Better Act (view the bill in its entirety by clicking here).
We should hear more about these tax provisions soon, but until that time, our tax team has reviewed items of interest, and the changes that may affect you.
Potential Tax Impacts to Watch
- Early expiration of the Employee Retention Credit (ERC). Under the bill, except for recovery startup businesses, wages paid after September 30, 2021, are not eligible for the ERC;
- Additional cryptocurrency reporting requirements for brokers;
- Disaster relief in the form of automatic filing extensions for federally declared disasters;
- Capital contributions to public utilities, excise taxes, and pension interest rates
Recovery Startup Criteria and ERC-Related Items
A recovery startup business is any employer that began carrying on a trade or business after February 15, 2020. The company must also have gross receipts of less than $1 million and meet other requirements (discuss with your tax professional). We are standing by and awaiting guidance from the IRS regarding penalty relief for taxpayers who did not make timely payroll deposits in anticipation of being able to claim the ERC for the fourth quarter.
Rest assured that we will continue to provide timely updates to keep you in the know. You can count on Grimbleby Coleman CPAs to help you navigate these tax provisions. Contact your accountant or email us at email@example.com today.