President Biden has just signed into law on November 15th, 2021, the Infrastructure Investment and Jobs Act. The major tax provisions of the Bill include the following:

  • Employee Retention Credit – Eliminated for fourth quarter of 2021 except for a Recovery Start Up Business.
  • Requires Broker Reporting of Crypto Asset Transfer – Internal Revenue Code section 6045(c)(1) is amended for the definition of broker to include anyone who for consideration effectuates transfers of digital assets on behalf of another person. Digital assets would be defined as any digital representation of value which is recorded on a cryptographically secured distributed ledger or any similar technology. This would require brokers to provide information returns reporting any transfer of digital assets to accounts that are not maintained by a broker. Basically means 1099 reporting.
  • Revival of the Superfund Tax – The prior superfund tax came about in 1980 and was established to clean up highly contaminated waste sites. The authority for the taxes expired in 1995. The tax would be in the form of an excise tax mostly on specifically designated chemicals and metals.

About the Author

Doug Finkle is a Director in the Tax Department at SobelCo. With a career spanning more than twenty years, Doug brings a depth of knowledge and experience to the firm. Over the years, he has developed strong competencies in handling tax compliance for corporations (including consolidations), partnerships, S corporations, and high net worth individuals. In addition, Doug is known for sharing his in-depth knowledge of tax laws and regulations, particularly by leveraging his broad involvement with tax planning and developing tax minimization strategies for clients. Drawing on this unique mix of knowledge of tax laws, Doug has proven to be an excellent problem solver who applies his strong analytical skills to help clients address their simple and complex issues. He also has expansive knowledge of preparing and reviewing tax provisions under ASC 740 Accounting for Income Taxes.