While the recently passed Infrastructure Investment and Jobs Act primarily addresses infrastructure-related issues, it includes several tax provisions affecting individuals and small business taxpayers. Let’s take a look:
Individuals
Cryptocurrency Reporting. Cryptocurrency reporting requirements are expanded to stem underreporting of cryptocurrency transactions. However, some have raised concerns that the reporting requirements of this tax provision are so broad that they apply to people who generate cryptocurrency and to people who do not have the information needed to comply with the reporting requirements.
Disaster Relief. The legislation extends certain tax deadlines for taxpayers affected by federally declared disasters. Also amended is the definition of a disaster area.
Tax Deadlines. The types of tax deadlines that are extended due to service in a combat zone are expanded.
Businesses
Employee Retention Credit. The Infrastructure Investment and Jobs Act legislation eliminates the credit for wages paid after September 30, 2021. Previously, however, The American Rescue Plan Act of 2021 extended the Employee Retention Credit to December 31, 2021. As such, there is some concern about the retroactive application of eliminating the credit since the legislation was not passed until after the start of the fourth quarter (i.e., December 1, 2021).
Employer-sponsored Retirement Plans. The relaxation of minimum funding requirements for employer-sponsored retirement plans is further extended, adding to tax revenue projections as funding requirements are decreased.
Contributions to Water and Sewer Utilities. Restoration of an exclusion for contributions to a regulated public utility for water or sewer construction.
Private Activity Bonds. The authorized private activity bond uses are expanded to include qualified broadband projects and qualified carbon dioxide capture facilities.
Excise Taxes. Excise taxes on fuels, retail sales of heavy trucks and trailers, and tires are expanded. Superfund excise taxes have been restored.
If you have any questions about these and other tax provisions please contact the office.
Any accounting, business or tax advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues, nor a substitute for a formal opinion, nor is it sufficient to avoid tax-related penalties. If desired, we would be pleased to perform the requisite research and provide you with a detailed written analysis. Such an engagement may be the subject of a separate engagement letter that would define the scope and limits of the desired consultation services.