MEDIA ALERT — The Infrastructure Investment and Jobs Act passed by Congress presents several implications for taxpayers to consider

Rhea-AI Summary

Wolters Kluwer Tax & Accounting discusses the tax provisions of the Infrastructure Investment and Jobs Act, which has an estimated cost of $1.2 trillion. Passed by the US Senate in August and the House of Representatives on November 5, 2021, the act includes expanded cryptocurrency reporting requirements and the elimination of the Employee Retention Credit for wages post-September 30, 2021. Notably, it also extends some excise taxes and disaster relief deadlines, adding complexity to tax compliance.

Positive

• Expansion of tax reporting requirements for cryptocurrencies may increase compliance and tax revenue.
• Restoration of Superfund excise taxes may facilitate funding for environmental cleanup and infrastructure.
• Relaxation of minimum funding requirements for employer-sponsored retirement plans could enhance business flexibility.

Negative

• Elimination of the Employee Retention Credit retroactively may negatively impact businesses reliant on this credit.
• Broad cryptocurrency reporting requirements could overwhelm taxpayers and lead to compliance issues.

Wolters Kluwer Tax & Accounting looks at the tax provisions of the Infrastructure Investment and Jobs Act

Wolters Kluwer Tax & Accounting:

What: The Infrastructure Investment and Jobs Act, first passed by the US Senate in August, has now been passed by the US House of Representatives on November 5, 2021 with an estimated cost of $1.2 trillion. The President has indicated that he hopes to sign the Infrastructure Investment and Jobs act the week of November 15, 2021. Learn more about some of the changes outlined below in this recently published Infrastructure Investment and Jobs Act tax briefing from Wolters Kluwer Tax & Accounting.

Why: Although the Infrastructure Investment and Jobs Act passed by the House and Senate includes fewer tax provisions than originally introduced, taxpayers should be aware of several provisions that have tax implications:

• Cryptocurrencies. The Infrastructure Investment and Jobs Act expands cryptocurrency reporting requirements in an effort to stem underreporting of cryptocurrency transactions. These provisions have raised some concerns that the reporting requirements 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
• Employee Retention Credit. The American Rescue Plan Act of 2021 extended the Employee Retention Credit to December 31, 2021. The Infrastructure Investment and Jobs Act legislation eliminates the credit for wages paid after September 30, 2021. However, with enactment after the start of the fourth quarter of 2021, some concern has been expressed about the retroactive application of the elimination of the credit
• 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. Expansion of authorized private activity bond uses to include qualified broadband projects and qualified carbon dioxide capture facilities
• Excise Taxes. Extension of excise taxes on fuels, retail sales of heavy trucks and trailers, and tires
• Superfund excise taxes. Restoration of Superfund excise taxes
• Disaster relief. Extension of some disaster-related tax deadlines
• Tax deadlines. Expansion of the types of tax deadlines that are extended due to service in a combat zone

Who: Tax expert Mark Luscombe, JD, LL.M, CPA, Principal Federal Tax Analyst, for Wolters Kluwer Tax & Accounting, can help discuss the tax provisions of the Infrastructure Investment and Jobs Act.

PLEASE NOTE: These materials are designed to provide accurate and authoritative information in regard to the subject matter covered. The information is provided with the understanding that Wolters Kluwer Tax & Accounting is not engaged in rendering tax advice or accounting, legal, tax or other professional service.

Contact: To arrange an interview with Mark Luscombe or other federal and state tax experts from Wolters Kluwer Tax & Accounting on this or any other tax-related topics, please contact Bart Lipinski.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211109006055/en/

BART LIPINSKI

847-267-2225

Bart.Lipinski@wolterskluwer.com

Source: Wolters Kluwer Tax & Accounting

FAQ

What are the key tax provisions of the Infrastructure Investment and Jobs Act related to cryptocurrencies?

The act expands cryptocurrency reporting requirements, which may affect both those generating and those not equipped to report transactions.

How does the Infrastructure Investment and Jobs Act impact the Employee Retention Credit?

The act eliminates the Employee Retention Credit for wages paid after September 30, 2021.

Are there any changes to excise taxes in the Infrastructure Investment and Jobs Act?

Yes, the act extends existing excise taxes on fuels and certain vehicle sales.

What provisions does the Infrastructure Investment and Jobs Act include for retirement plans?

The act extends the relaxation of minimum funding requirements for employer-sponsored retirement plans.

When was the Infrastructure Investment and Jobs Act passed by the House?

The act was passed by the House of Representatives on November 5, 2021.