President Joe Biden appear he’ll sign the Infrastructure Investment and Jobs Act (IIJA), better known as the bipartisan infrastructure bill, into law on Mon, November 15.
While the bulk of the bill is directed toward massive investment in infrastructure projects across the country, a handful of noteworthy tax provisions are tucked inside. Hither’due south what you demand to know well-nigh them.
Early Termination of Employee Memory Credit
The IIJA volition terminate the employee retention credit (ERC) created by the Coronavirus Aid, Relief, and Economic Security (CARES) Act before than originally planned.
The American Rescue Programme Deed (ARPA) had extended the credit to eligible employers for the third and 4th quarters of 2021, through Dec 31, 2021. Under the new police, the ERC, which for 2021 is worth upwards to $7,000 per qualifying employee per quarter, is no longer available for wages paid later on September xxx, 2021. This early on termination doesn’t apply to recovery start-up businesses.
The ARPA by and large defines
recovery get-go-up businesses
every bit those that began operating after February 15, 2020, with annual gross receipts for the three previous tax years of less than or equal to $one million.
These employers tin merits the ERC for up to $l,000 total per quarter for the third and fourth quarters of 2021 without showing suspended operations or reduced receipts.
New Information Reporting on Digital Avails
The IIJA will require brokers to report to the IRS the cost footing of digital avails transferred past their clients to nonbrokers, similar to how securities brokers report stock and bond trades.
Digital assets
are divers as whatsoever digital representation of value that’s recorded on a cryptographically secured distributed ledger or similar applied science. This definition could ensnare non only cryptocurrencies—such as Bitcoin and Ethereum—but also sure nonfungible tokens (NFTs). The IIJA will expand the definition of
broker
to include those who operate trading platforms for digital assets, such as cryptocurrency exchanges.
The IIJA will also change existing tax law to treat digital assets as cash. Every bit a consequence, individuals engaged in a trade or business concern will demand to submit IRS Form 8300,
Report of Greenbacks Payments Over $ten,000 Received in a Trade or Business concern, when they receive such amounts in i transaction or multiple related transactions.
The digital assets provisions will take event for returns required to be filed, and statements required to be furnished, later on December 31, 2023. The IRS is expected to provide guidance earlier that time, merely some businesses may find that accepting cryptocurrencies for payment won’t be worth the reporting brunt.
