Late last Friday the House passed the Infrastructure Investment and Jobs Act, the Senate had passed the bill back in August. While there are few immediate tax provisions in this bill, it opens up the way for the reconciliation bill, the Build Back Better Act, which has significant tax impacts.
Tax impacts related to the Infrastructure Investment and Jobs Act:
Tax impacts related to the Infrastructure Investment and Jobs Act:
Employee Retention Credit – Most employers will lose the ability to take the employee retention credit for the fourth quarter of 2021. Wages paid after September 30th are ineligible unless they were paid by an eligible recovery startup business.
Cryptoasset Reporting – The bill expanded the definition of “broker” so that platforms that have “transfers of digital assets on behalf of another person” are now subject to additional reporting requirements. This will make cryptocurrency exchanges like Coinbase subject to additional reporting. The bill did not specify what the exchanges will send to their customers but it is likely to be Form 1099-B “Proceeds from Broker” which traditional brokers use.
For more information see the Journal of Accountancy Article on these updates.
While these are not significant changes over all, we recommend that you keep a close eye on our blog as we expect more information on the Build Back Better Act to be available soon. Follow us on LinkedIn to stay up-to-date!
Cryptoasset Reporting – The bill expanded the definition of “broker” so that platforms that have “transfers of digital assets on behalf of another person” are now subject to additional reporting requirements. This will make cryptocurrency exchanges like Coinbase subject to additional reporting. The bill did not specify what the exchanges will send to their customers but it is likely to be Form 1099-B “Proceeds from Broker” which traditional brokers use.
For more information see the Journal of Accountancy Article on these updates.
While these are not significant changes over all, we recommend that you keep a close eye on our blog as we expect more information on the Build Back Better Act to be available soon. Follow us on LinkedIn to stay up-to-date!
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