Unlike the larger Build Back Better bill that is still under consideration in Congress, the Infrastructure Investment and Jobs Act does not contain tax provisions that alter income tax rates, deductions or credits.
Nonetheless, there are a couple of provisions that we want to make you aware of:
- The Employee Retention Credit (“ERC”) is being terminated earlier than originally scheduled. It now applies to wages paid before October 1, 2021. Prior to this change, the credit was applicable for wages paid prior to January 1, 2022.
- There is a provision that now requires brokers to provide information reporting on sales of digital assets (Cryptocurrency). The change is not effective immediately but will be in place for returns filed after December 31, 2023. Individuals can expect to receive a Form 1099 for crypto sales when this is implemented. We expect the reporting to be similar to when stocks or bonds are sold.
We are here to help you sort through the ever changing tax legislation and expect to send out a communication once the Build Back Better bill is signed into law. In the meantime, don't hesitate to reach out to discuss your personal situation.