The Tax Provisions of the Infrastructure Act

Because of the Infrastructure Investment and Jobs Act, P.L. 117-58, which President Joe Biden signed into law on November 15, 2021, the ERC was ended early and broker reporting of cryptoasset transactions is now required. After clearing the Senate in August, the bill was finally passed by the House of Representatives on Nov. 5, 2021.

Praise for retaining employees

Eligible recovery starting businesses were exempt from the ERC’s statutory expiration date of Dec. 31, 2021, which was included in the legislation.

Reporting on cryptocurrency assets

New cryptoasset information reporting obligations are imposed on brokers under Section 80603 of the Act. Sec. 6045(c)(1) expands the term “broker” to include anyone who “transfers digital assets on behalf of another person” for consideration. Digital assets are defined as “any digital representation of value stored on a cryptographically secured distributed ledger or any equivalent technology” for the purposes of this document.

A new bill changes Sec. 6045A to mandate that brokers record any transfers of digital assets to accounts that are not maintained by a broker. After Dec. 31, 2023, all returns and statements must be submitted or provided in accordance with these revisions.

In the event of an emergency, assistance is provided

Sec. 7508A of the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019, Public Law 116-94, alters the automatic extension of deadlines for taxpayers impacted by federally declared disasters. According to Section 7508A(d)(3), a disaster region is defined as “an area in which a catastrophic catastrophe occurs for which the President provides financial assistance under section 408 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C 5174)”. Previously, the definition in Section 165(i)(5) was cited in this paragraph as a cross-reference (B).

Various other tax provisions

Extension and adjustment of certain Superfund excise levies are included in this bill, along with many additional tax measures. For approved broadband projects and carbon dioxide collection facilities, it also authorises private activity bonds.

  • New Jersey’s P.L. 117-58, the Infrastructure Investment and Job Creation Act

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