It’s like magic: now you see it, now you don’t. Tax professionals near me break down what you need to know about tax updates from the last two years.
The last two years have generated lots of tax proposals and enactments.
Here at Palma Financial Services, we stay on top of them, so you don’t have to worry.
We work to meet the needs of every customer by providing exceptional customer service, cutting-edge technology, and knowledgeable tax professionals.
Recent Tax Proposals and Enactments
On March 11, 2021, the American Rescue Plan Act of 2021 became Public Law 117-2. This new law extended the ERC to the third and fourth quarters of 2021.
On November 15, 2021, the Infrastructure Investment and Jobs Act became Public Law 117-58 and ended the ERC three months early, retroactive to September 30, 2021.
Say goodbye to the fourth quarter’s employee retention credit (ERC). Lawmakers giveth and lawmakers taketh away.
Lawmakers did not kill the fourth-quarter 2021 ERC for start-up businesses. Thank goodness! That tax benefit survived.
Still, you cannot consider any retroactive tax law repealing a good tax policy. And this retroactive repeal was done only nine months after passage.
What lawmakers did is not surprising; we expect more retroactive legislation in the coming years.
Claim Your Credit Now
But don’t let this bad news deter you from claiming the credit for 2020 and the first three quarters of 2021. You may remember that the remaining credits can add up to $26,000 per employee.
And keep in mind that there’s no mad rush—you have time. You can claim the ERC anytime during the three-year statute of limitations.