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 3^rd quarter of 2021 is the last quarter that will be eligible for the credit and the 4^th quarter will NOT be eligible.
  • The only businesses eligible in the 4^th 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).

Please contact your Somerset advisor at at 317.472.2200 or with any questions.