2023 Tax Calendar
VIEWpoint Issue 2 | 2022
Inflation Reduction Act: Highlights of Key Changes for You and Yo...
The 2022 Gift Tax Return Deadline Is Coming Up Soon
HUD Strengthens the Effects Test
President Biden’s Proposed Budget Includes Notable Tax Provis...
On Aug. 1, 2021, a $1.2 trillion bipartisan infrastructure bill was released after months of contentious negotiations. The bill aims to provide funding for roads, bridges, mass transit, broadband, water and wastewater. If passed, the Infrastructure Investment and Jobs Act will be the largest infrastructure investment the country has seen in over a century.
While the original infrastructure plan from President Biden called for corporate tax rate increases, luckily for business owners, the proposed changes did not make it through the course of negotiations. The Employee Retention Credit (ERC) was not as lucky.
The ERC was introduced by the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March 2020 to businesses in the wake of COVID-19. The tax credit was meant to be an incentive to keep Americans employed during the pandemic. Unfortunately, the newly unveiled bill includes a provision to raise funds that would end the pandemic-era tax break for businesses in 2021 three months early. Qualifying employers would no longer be able to take advantage of the tax credit in the fourth quarter of 2021. Today, employers that qualify can get up to $7,000 per quarter or $28,000 per employee a year in 2021 based on qualified wages paid. The exception to this rule is recovery start-up businesses. These businesses, which have annual sales of less than $1 million and started operations after Feb. 15, 2020, will still be permitted to claim the tax credit for the fourth quarter of 2021.
The bill also includes additional proposed tax-related changes related to cryptocurrency reporting requirements and tax deadline extensions for disaster areas, as well as those impacted by the ongoing wildfires in the United States.
The Senate is expected to vote as early as this week to avoid the bill stalling out while the chamber leaves for recess next week.
Doeren Mayhew’s tax advisors are committed to keeping you up-to-date on potential tax changes that may impact you and your business as a result of new legislation. If you have any questions about the potential impact if this bill moves forward and is signed into law, contact us today. Otherwise, stay tuned for more information as it develops.
This publication is distributed for informational purposes only, with the understanding that Doeren Mayhew is not rendering legal, accounting, or other professional opinions on specific facts for matters, and, accordingly, assumes no liability whatsoever in connection with its use. Should the reader have any questions regarding any of the news articles, it is recommended that a Doeren Mayhew representative be contacted.
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