Senate Finance Committee Chair Ron Wyden, D-Ore., and House Ways and Means Committee Chairman Jason Smith, R-Mo., announced an agreement Tuesday on tax framework legislation, the Tax Relief for American Families and Workers Act of 2024. They are looking for potential avenues to enact the legislation this month, though its path forward is uncertain.
The bill makes no changes to the credit union tax status but would alter the COVID employee retention tax credit (ERTC) that could affect participating credit unions.
The legislation would end all ERTC claims after Jan. 31, more than a year earlier than the current deadline of April 15, 2025.
The legislation focuses ERTC penalties on consultants and promoters who took commissions. It would also extend the possibility of ERTC audits to six years (past the current five).
America’s Credit Unions is analyzing the full scope of the proposal and will provide updates as appropriate.
