Earlier this year, our Insights and Commentary team asked what tax practitioners needed to know—from tax tips to topics to watch out for—to start the new year off right. This week, we’re publishing some of the best submissions. This tip was submitted by Eric Hylton of alliantgroup.
Businesses around the world suffered a great deal this year, and U.S. businesses were no exception. Matching the dynamism of the business environment, Congress created and adjusted a variety of Covid-19 related financial tools.
Resources such as the Employee Retention Credit were both created, through the CARES Act, and then halted, with the Infrastructure Investment and Jobs Act, within the span of a year-and-a-half. Recent bills, including the bipartisan Employee Retention Tax Credit Reinstatement Act, seek to extend the eligibility period for the incentive as the true impact of the omicron variant has yet to be seen.
The unpredictability of business recovery will continue to be mirrored in the tax credit and incentive ecosystem. As we look ahead to best preparing clients to take advantage of eligible resources in 2022, it will be imperative that tax preparers remain nimble and well-informed of the incentives created and adjusted rapidly as the year proceeds. Notably, even credits like the employee retention tax credit, for which eligibility ended in September 2021, can and should be back-claimed.
About the Author
Eric Hylton held several prominent positions at the IRS, including serving as Deputy of the Criminal Investigation Division and as CI’s head of International Operations. As National Director of Compliance, Eric employs his years of experience at the IRS to assist alliantgroup’s clients as an ambassador for U.S. small and medium sized businesses (SMBs) and in helping others become tax compliant.