Congress has passed the $1+ trillion Infrastructure Investment and Jobs Act. Below are some provisions which have a potential impact on our clients:
- Employee Retention Credit
- The employee retention credit will only apply to wages paid before October 1, 2021. Therefore, the 3rd quarter of 2021 is the last quarter that will be eligible for the credit and the 4th quarter will NOT be eligible.
- The only businesses eligible in the 4th quarter are recovery startup businesses. Recovery startup businesses are businesses that:
- Began carrying on any trade or business after February 15, 2020
- Has average annual gross receipts that do not exceed $1,000,000 for the three-tax-year period ending that precedes the calendar quarter for which the employee retention credit is determined
- Digital Asset (Cryptocurrency) Treated as Cash for $10,000 Reporting Purposes
- A person engaged in a trade or business who, in the course of that trade or business receives more than $10,000 in cash or digital assets (in one or more related transactions, must file an information return with the IRS and furnish the payor with a statement).