April 7, 2021
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Argent Money
IRS issues Employee Retention Credit guidance

The IRS issued guidance for employers claiming the Employee Retention Credit for the first and second quarters of 2021.
 
Eligible employers can claim a refundable tax credit against the employer share of Social Security tax equal to 70 percent of the qualified wages they pay to employees between Dec. 31, 2020, and June 30, 2021.
 
Notice 2021-23 explains changes to the credit for the first two calendar quarters of 2021, including the maximum credit amount, increase in eligibility, and other modifications.
 Source: IRS
Senate Republicans urge CBLR relief extension

Senate Banking Committee Republicans led by Sen. Mike Crapo (R-Idaho) called on federal regulators to use their authority to extend the 8 percent Community Bank Leverage Ratio through Dec. 31.
 
As required by the CARES Act, the agencies lowered the CBLR to 8 percent for 2020, exempting more community banks from risk-based capital requirements. Under an interim final rule, the CBLR will transition to 8.5 percent in 2021 and to 9 percent in 2022.
 
The senators said community bank Paycheck Protection Program lending and Economic Impact Payment deposits have dramatically affected their capital levels and leverage ratios, justifying an extension of CBLR relief.
Source: ICBA
Supreme Court narrows Telephone Consumer Protection Act

The U.S. Supreme Court unanimously decided to restrict the Telephone Consumer Protection Act by narrowing what qualifies as an automatic telephone dialing system.
 
The TCPA bars phone calls using an ATDS without prior express consent and has previously roped in phone systems used by banks with an auto-dialer or prerecorded or artificial voice.
 
In Facebook v. Duguid, the court ruled that dialing systems must be able to store and produce phone numbers using a random or sequential number generator to be considered an ATDS, limiting it applicability to banks that use phone systems to reach customers.

Source: ICBA
Senate bill would tax capital gains at time of death

Sen. Chris Van Hollen (D-Md.) and several other Democratic senators introduced legislation that would require estates to pay capital gains tax before assets are distributed to heirs, with an exemption for the first $1 million of capital gains.
 
The legislation is an alternative to proposals to end the “stepped-up basis” tax policy whereby the basis of assets held in an estate are reset and any capital appreciation during the decedent’s lifetime is not subject to tax. Both the Van Hollen proposal and removal of stepped-up basis would result in the forced sale of family-owned banks, farms, and other small businesses to pay tax.
 
The American Jobs Plan released by the Biden administration to fund infrastructure spending through higher corporate tax rates does not include a repeal of stepped-up basis. The Biden plan would raise the corporate tax rate from 21 percent to 28 percent and increase taxes on U.S. companies’ overseas earnings, though additional tax proposals are expected from the White House.
Source: ICBA
CFPB proposes servicing changes to prevent foreclosures

The Consumer Financial Protection Bureau proposed a set of rules changes to prevent foreclosures as emergency protections expire.
 
The proposed rule—which exempts small servicers—would prohibit servicers from starting foreclosure until after Dec. 31, allow servicers to offer streamlined loan modification options to certain borrowers, and change certain required servicer communications to borrowers.

Source: CFPBl
FDIC launches page on brokered deposit rule

With revised brokered deposit regulations taking effect today, the FDIC is launching a new Brokered Deposits webpage on its Banker Resource Center.
 
The rule establishes a new framework for determining whether deposits made through deposit arrangements qualify as brokered deposits. The full compliance date is Jan. 1, 2022.
 
The new page includes filing instructions for new notice and application processes related to the “primary purpose exception.”

Source: FDIC
$1M Same Day ACH limit coming in 2022

Nacha said it approved a new rule to increase the Same Day ACH per-transaction limit to $1 million, effective March 18, 2022. This will be a tenfold increase from the $100,000 maximum that took effect in March 2020.
Source: Nacha