The U.S. House of Representatives in the late hours of Friday, November 5, 2021,
passed H.R. 3684, the “Infrastructure Investment and Jobs Act” in a 228 to 206
bipartisan vote. The Senate had approved the same version of the bill, which is
now ready for the president’s signature, expected today.
IRC Section 6045
The 2,700-page bill, which funds investment in improvements to the country’s
roads, bridges, highways, and Internet connections, also includes a few tax-related
provisions. For example, the legislation includes a provision that amends Internal
Revenue Code (IRC) Section 6045 to expand information reporting requirements
to include brokers or any person who is responsible for regularly providing any
service effectuating transfers of digital assets, including cryptocurrency, on behalf
of another person. The measure also adds digital assets to current rules that
require businesses to report cash payments over $10,000. This provision applies
to returns required to be filed after Dec. 31, 2023.
IRC Section 3134
The bill also includes a provision that amends IRC Section 3134 to terminate the
employee retention credit on October 1, 2021, three months earlier than the
current January 1, 2022, end date. The provision applies to calendar quarters
beginning after Sep. 30, 2021.
IRC Section 430(h)(2)(C)(iv)
Another revenue raiser included is a provision that modifies the IRC Section 430(h)
(2)(C)(iv) table of applicable minimum and maximum percentages with respect to
certain pension plans, known as “pension smoothing,” which is estimated to raise
approximately $2.9 billion over a 10-year period by reducing the level of deductible
employer pension contributions required under the pension funding rules. These
amendments apply to plan years beginning after Dec. 31, 2021.
Excise Taxes
The bill also reinstates and modifies some expired Superfund excise taxes imposed
on the production of specified chemicals through December 31, 2031, and extends
various highway-related excise taxes (including fuel taxes and heavy vehicle use
taxes) and related exemptions for six years.
Here at Frost, PLLC we are actively monitoring the situation and are available to
Please contact your Frost representative(s) with any questions.