What is Bias?

what is bias
What is Bias?

Bias is a type of prejudice or distortion which affects many aspects of life, from the types of jobs available to which politicians get elected. The term “bias” refers to an inclination of thought or judgment towards a certain position. It can be conscious or unconscious and often manifests itself as an unfounded opinion, leading people to adhere to certain views without considering evidence or alternative perspectives.

The Effects of Bias

 The effects of bias are far-reaching and can shape our decisions from anything as serious as how we vote in elections to what food we buy at the grocery store.

Unfortunately, without the proper understanding or willingness to combat these biases, it can become difficult for marginalized members in our communities to gain basic rights that so many others take for granted. Society must work together toward understanding bias and strive for greater inclusivity to create a level playing field for these marginalized members.  And this process starts with overcoming these biases.

Bias comes in many forms, both overt and subtle. From workplace discrimination based on gender and/or race to political partisanship that discounts science, there are countless examples of bias manifesting itself in everyday life.

What are the different types of bias?

There are two main types of bias to be aware of, conscious bias and unconscious bias.

Conscious bias is sometimes known as explicit bias. This is a type of bias that you are aware of. The bias is happening consciously, in that you know you are being biased and are acting with intent. An individual with conscious bias is likely to be explicit with their beliefs and attitudes and behave with clear intent.  This type of bias typically leads one to discriminate against people or groups of people. There is usually malicious intent involved in conscious biases.

Unconscious bias is also known as implicit bias. It is a very different bias than conscious bias for several reasons. Unconscious biases are beliefs and attitudes that operate outside of a person’s awareness and control. Unconscious bias can be in direct contrast with the beliefs and values you think you hold. You may not even be aware that you hold these biases, or that they are affecting your attitudes and behaviors.  Unconscious biases are difficult to identify. They may influence your actions and behaviors more than conscious biases without you realizing it. Taking an implicit bias test will help you identify your unconscious bias.

Besides the two main types of bias, there are several others that can affect how you interact with others and make decisions.  Let’s a few of these other common forms of bias:

Cognitive biases include mental shortcuts that lead people to reach erroneous conclusions. Examples include confirmation bias (emphasizing facts that support one’s own view) and the overconfidence bias – deciding with inadequate research data because of overconfidence.

Gender Bias occurs when someone is treated differently based on their gender identity, whether consciously or unconsciously. Common examples include paying women lower salaries than men for equal positions and preferential treatment given to male employees.

 Racial Bias is a form of discrimination based on race, ethnicity, or nationality. It involves negative attitudes and stereotypes regarding individuals who belong to certain racial or ethnic backgrounds and can result in lower levels of education, healthcare, wealth, and other areas of life.

Political Bias occurs when someone ignores facts supporting an opposing political agenda in favor of promoting their own party’s beliefs — regardless of factual evidence against them — often causing distortions in public opinion polls and research data used by regulatory entities like the Environmental Protection Agency (EPA).

Anchoring bias occurs when you rely too heavily on one piece of information when making a decision or taking an action. This type of bias often leads to overvaluing that specific piece of information while simultaneously ignoring all other factors.

Stereotyping bias is common in both personal and professional relationships and arises when people assign characteristics to someone based solely on their characteristics, such as race, gender, or ethnicity. This type of biased behavior can limit access to resources or opportunities because of inaccurate assumptions about an individual’s ability or capacity.

Confirmation bias refers to placing too much value on findings that support pre-existing beliefs without considering any opposing evidence that could potentially derail those beliefs. Confirmation bias leads us to overlook research data, information, or evidence that could influence our decision-making process by contradicting our preconceived notions regarding a particular subject or topic.

The halo effect is another form of cognitive bias which involves individuals forming opinions about a person based solely on preconceived notions about them rather than facts or actual knowledge about their abilities or qualities. For example, if you already hold positive views about an individual, this could lead you to make more favorable assumptions about their abilities or qualifications, regardless if there is actual proof or evidence to back it up.       

Availability bias occurs when we make decisions using only the most easily available data instead of considering alternative examples that may have more relevance to our decision at hand. For instance, instead of doing extensive research regarding a particular stock market trend before investing money in it – you might use your instincts solely as they’re more readily available than reliable research reports regarding such investments.

How you can avoid bias from affecting you negatively

Having an open mind and respecting other people’s opinions are two of the most important things when it comes to avoiding bias in your work, life, and even personal values. Bias can be a tricky thing to avoid, and it’s easy for us to slip into our own judgments and decisions without thinking twice about it. Here are a few tips to help you avoid letting your bias influence your decision making negatively.

Recognize Your Biases – The first step to avoiding bias is being aware of all the biases that you have been programmed with since birth. You need to recognize not only what you believe but why you believe it so you can understand where any prejudice may come from. This helps you become conscious of your personal limitations and provides a perspective on situations with a bit more clarity.

Analyze Your Assumptions – It’s a good idea to make sure that your thoughts and opinions are backed up with facts when making important decisions. Do a gut check before you make any assumptions before coming up with conclusory statements, as these can often be riddled with biases just as much as stereotypical views or beliefs.

Be Open-Minded – Having an open mind means being receptive towards different opinions regardless if they conflict with yours or not. Often, closed-mindedness leads to biases like stereotyping, which reflects badly on one’s judgment. Practicing humility will help in recognizing everybody’s true worth despite their race, gender, nationality or ethnicity; allowing for informed opinion making rather than biased assumptions fueled by external factors.

Filter Out Unnecessary Details – It’s human nature to miss details while reading or listening which also makes it easier for misinterpretation leading to ill-informed bias based judgments or decisions. Always take the time needed when analyzing a situation before judging or making major decisions even if there’s ‘not enough time’.  Reviewing additional information or a having a conversation with individuals who are more informed about a topic will help you filter out unnecessary bias and hopefully avoid prejudice.

What is DEI?

what is dei
What is DEI?

Diversity, equity, and inclusion (DEI) refer to the practices and initiatives that aim to create a more diverse and inclusive workplace, where individuals from different backgrounds and experiences are treated with respect and fairness. DEI initiatives can include efforts to increase representation of underrepresented groups, address discrimination and bias, and create a sense of belonging for everyone. The goal of DEI is to create a workplace environment that is welcoming and inclusive to all, regardless of race, ethnicity, gender, sexual orientation, age, ability, religion, or any other personal characteristic. DEI is increasingly being recognized as an important aspect of a healthy and successful workplace, as it has been shown to have a positive impact on morale, productivity, and innovation.

Benefits of DEI practices include:

Greater innovation and problem-solving: A diverse team can bring a wide range of perspectives and experiences to the business, which can lead to more creative solutions and better decision-making.

 

More favorable reputation: Companies that are seen as supportive of diversity and inclusion may be more attractive to top talent, customers, and investors, which can lead to increased operational performance, innovation, and revenue.

 

Increased productivity: A workplace culture that is inclusive and welcoming can lead to higher levels of employee engagement, which can translate into increased productivity.

 

Greater adaptability: Companies with diverse teams may be better able to adapt to changing market conditions and customer needs.

 

Increased Alignment with Client Base: Rarely nowadays are client bases a monolithic entity. In our increasing global, diverse economy, a company embracing DEI initiatives better aligns with a heterogeneous client base, fostering optimal client-company relationships.

 

Despite the benefits of DEI, there remain some who are fearful or hesitant about these initiatives. People who are resistant to change may feel uncomfortable with the idea of disrupting the status quo. However, DEI is not new: it has its roots in the 1960s civil rights moments, expanding with employment legislations through the 1970s, and has continued to evolve within the last decades to include more groups and untapped talent.

Some people may oppose DEI initiatives because they do not believe that diversity or inclusion are important issues. They may view DEI as unnecessary or even as a threat to their own status or privilege, concerned about affirmative action and/or fearing reverse discrimination. For people with these concerns, there has to be a greater focus on explaining DEI so they understand that this is not about taking away anything from any one group, but instead about making everyone feel that they have a seat at the table.

Others may be unaware of the benefits of DEI or may not fully understand what it means. They may be afraid of saying or doing the wrong thing, or they may be resistant to the idea of discussing sensitive topics such as race or gender. It’s important to recognize that these fears and concerns are natural, and it may be necessary to address these feelings head on in order to create a more inclusive and welcoming environment. This can involve educating people about the benefits of DEI, providing resources and support to help people understand and embrace diversity and inclusion, and creating clear guidelines and policies to ensure that everyone is treated with respect and fairness.

The Dirt on My Lens

The Dirt on My Lens

I go through life with a few simple principles to guide me. Those principles made this a challenging piece because I wanted to take great care to be understood without compromising my belief system or minimizing my experiences or that of others. The first of those principles that made this challenging is, “what is the objective?” The objective of this piece is to give you a truth through a different lens. It’s not my intention to alter anyone’s opinions or minimize their experiences, but rather to put mine, in those I represent, front and center without filters. Principle two is “don’t expect what you’re not willing to give.” Before deliberating on this piece, I spent more than a year researching, listening, and making every effort to understand others, put myself in their shoes, and look through their lens. That made this even more complex a task because while I was able to learn much about myself and empathize with people that I never sought to understand before this intentional effort, it also served to give me moments of frustration, moments of confusion, and the need to represent myself and those I’m perceived to represent without filters.

Conventional training suggests I start by demonstrating understanding to reduce the reflexive emotional impact. However, most of this isn’t traditional discussions, and for the parts that are, conventional methodologies haven’t been effective, so for once, let’s have a conversation without excuses. Answer this question, “what am I trying to overcome?” You may have a detailed response to that question but ask yourself the question in terms of a collective. By collective, I mean, what are you collectively trying to overcome when you think of others with similar looks, beliefs, socio-economic backgrounds, education, opportunities, etc., that you are perceived to represent? One of the things that I learned on this journey is that everyone has an expectation of respect at any cost, but how challenging is that to expect what you’re not willing to give? How hard is it to unlearn everything you were taught in the name of respect for others? How much energy do you have for that in the face of being or being made to feel disrespected? “Focusing on any individual difference, rather than differences having strong personal meaning and stemming from or coinciding with significant power differences among groups, would make all groups diverse, and would therefore make the entire concept of workplace diversity meaningless.” (Konrad, 2003; p. 7)

Let’s start where we can all agree.

We come into this world knowing absolutely nothing, possessing a genetic code that will determine some aspects of who we will become physically and some idiosyncrasies. Outside of that, we learn everything else after we are here, which would mean that all lack of decency or respect for humanity is taught in this realm.

I think it’s necessary to clarify the separation between prejudice and racism. You can use the term prejudice and almost anything without human context. Racism, however, can only be used in the human context. I believe these are sometimes confusing because they’re both learned.

Prejudice – preconceived opinion that is not based on reason or actual experience. If I said I did not like hockey without ever attempting to play hockey or even attending a hockey game, that would then be a prejudice; however, if I went to a hockey game or attempted to play hockey and then decided that I didn’t like hockey that what was previously a prejudice has now been made true and it doesn’t involve human context.

Racism – is the process by which systems and policies, actions, and attitudes create inequitable opportunities and outcomes for people based on race. There are many other isms, and without attempting to minimize them understand that they are associated with attitudes more than systems and policies for the most part. Stay with me now because this is right about the time that this gets uncomfortable, and people want to advocate for any effect or any other ISM that has impacted them.

Yes, sexism and ageism are real; however, what other ISM has had the atrocious generational impact of racism?

I once asked the question, “is DEI real in existence outside of the workplace?”

It’s a hot-button topic, and many advocates, education, and resources exist. However, if you examine the most prominent people in that space, by human nature, they advocate for what they represent and the experiences that they’ve encountered because of their representation or association. Is this effective? Or does it result in a world full of people trying to be heard? Trying to be seen? Trying to be recognized, acknowledged, and respected? I’ve been challenged in writing this piece because while I feel compelled to draw more insight into what the experiences are for a black man in America, there have been substantial writings about this in the past that haven’t had an impact.

We are now at a place where other things come across as equally challenging, especially when discussing inclusion and equity. As I’ve said, it’s not my attempt to minimize anyone else’s plight or experience. Still, we must have conversations about our social constructs and historical impacts while simultaneously acknowledging the laws of nature. Yes, nature has laws. For example, every species under the sun, besides humans, operate under the law that the strong survive. Some argue that what separates us as humans is our ability to think outside of that construct and enable and empower one another. Still, the first law of nature is self-preservation, so is that what we indeed do?

Consider this indisputable fact.

At 6’4, 310 lbs., when I walk into a room, you do not know my sexual orientation, my pronouns, my education level, my background, or any other nuances about me that make me who I am. When I walk into a room, there are two things you will readily assess: I am black and a man. These are the primary two factors you will share with anyone else if necessary to describe me without knowing what makes me who I am. That I am black, and I am a man. Your actions and reactions to me will be rooted in your prior prejudices and experiences with all other black men. That’s not your fault; it doesn’t make you wrong; it’s what you’ve learned since you’ve been here on earth. This doesn’t only apply to middle-aged and above, white people. This applies to other black men, black women, and those of any other race. There’s typically a dance that takes place. On one side, I’m trying to assess what systems, actions, and attitudes you’ve been exposed to regarding black men while you’re attempting to evaluate me as an individual best-case scenario. In a conversation with a gay man to help me understand his perspective, he said, “Just like you wake up every day as a black man, I wake up every day as a gay man. You didn’t get to choose, nor did I.” I had heard this argument before but never been engaged in a conversation about it with someone whose objective wasn’t just trying to be convincing.

Initially, I was offended. Then I shared something that I felt got my point across without him feeling disrespected. I told him, “You’re right.” You may not have chosen or have a choice but consider this. No one knows until you tell them. You know I’m black the minute I enter the room with no additional observation or conversation necessary.

As I sit in and interact in the DEI space, I notice that inclusion, more than diversity or equity, has taken the front seat. I believe this is because many seeking inclusion has never had to deal with systems or actions designed to limit equitable opportunities for them. I’ve heard comments like, “well, you were not a slave, and you don’t know any slaves.” They’ll say, “I’m not a slave owner, nor have I known any slave owners. That’s the thing about words. The truth can be accurate and used to defy another truth. You don’t have to be an enslaver to have benefited from the impacts of slavery. You don’t have to have been enslaved to suffer from the consequences of slavery. I have known relatives who were slaves. I can only assume that if I’m old enough to have encountered people who were slaves, who had a hand in my early development, many white people my age or older in America have had relatives who were slave owners that had a hand in their early development. The eradication of slavery did not eradicate the impact of slavery.

Beyond slavery, we are less than a lifetime from the end of the Jim Crow era.

What systems or policies have you seen come to an end in your life that impacted your attitude toward what that thing was? The overturning of Roe versus Wade is a perfect example in that the outcome of the case changed the reality of what women will have to deal with, but it did nothing to change anyone’s attitude about pro-life or pro-choice. Despite the ending of slavery or the subsequent 100-year Jim Crow span, the reality is that before any of those concessions were made, systems were put in place, and actions were taken to ensure a power structure and the continuing oppression of black people. This also included the psychological efforts to turn the black man’s number one ally into his number one enemy and use him as a scapegoat. That’s a very unpopular speech. It’s typically met with a lot of resistance. Specifically, black women in the resistance of such speech, confirm it’s true by blaming black men for all the evolution that resulted in the destruction of black households, rather than acknowledging the systemics intentionally designed to accomplish that task. Regardless of which equity or inclusion you fight for, there’s also a black man in that same fight. Imagine how hard it is for you now. Add the weight of his shoes to that.

Imagine having to explain to your son the dangers of the world that only exists because of his skin color. Imagine knowing there is no level of success you can achieve, no ground you could break, no accomplishment you can have that could protect you from the constant risk of your skin color. Like anyone, I see debates online about many social issues. Most of them enter a hypersensitive realm making it clear that these arguments are primarily perspectives. One great example is when the world stopped.

The case of George Floyd was seen around the world. Not because it was a rare atrocity. There was absolutely nothing unique about George Floyd’s case. I listened and watched legal scholars debate the nuances of the case. I listened and watched law enforcement debate the nuances of the case. I listened to and observed worldwide engagement, which included protests, many of which led to riots. I knew it would have never had the magnitude that it had, had it not been when essentially the world was shut down. If people could go about their everyday lives as usual, this case would not have had the impact it did. No matter which side of the issue you were on, whether you felt that George Floyd was guilty or not guilty, whether you thought his end was a result of actions before or during the arrest, at the end of the day, until you share that experience from the perspective of a black man having lived through it you cannot truly resonate with it. Like the effects of being in a tragic car accident, I suffer emotional distress in interaction with law enforcement. I know if I’m pulled over, I must be prepared to suffer any degree of humiliation necessary to ensure I see another day. Despite personal relationships with many members of the law enforcement community, my angst isn’t eased in these encounters. In one conversation with a ranking member of law enforcement whom I’ve known since middle school, he advised a group of socially assembled black men that our beliefs weren’t without merit. That “law enforcement is trained to approach and handle black men aggressively without consideration of any other factors.” He further acknowledged that the “blue code,” or “blue wall,” wouldn’t allow such to be a public discussion.

I can’t honestly say what my first experience with racism was, but I can tell you the first one I remember.

It occurred on a highway in Mississippi in April of 1982 and involved law enforcement. As recently as October of 2022, I experienced what’s considered micro-aggressions while traveling throughout Europe from my “fellow Americans,” which was deeply disturbing and unearthed my defenses for my wife and others in my fold. The number of times in life I encountered racism was enough to condition me to have extreme prejudice myself. Notice I said extreme prejudice, not racism. The reason being, I nor anyone who looks like me has the collective power to create systems and actions designed to develop inequitable outcomes for others. Fortunately, in my adult life, I experienced enough encounters to understand that nothing in human interaction is absolute, and you cannot approach humans with prejudice because we are individuals.

On my journey into DEI, I’ve learned that most of society is hypocritical. We lack principles. Everyone claims to be principled but ask them where they stand on a matter and change the details of the same issue, and they will change their minds. For example, I’m an advocate of free speech, a claim that many people and America would make. However, unlike most Americans, I don’t cringe at hate speech. I don’t try to silence unpopular speech or cancel their advocates. If it is a topic that I’m passionate about or that I feel requires a response, I don’t raise my voice or match energies; I improve my argument, as I did with the gentleman described before. I do so with an open mind hoping to learn from them as well because I understand that their position is the result of conditioning and would like to understand what were the things that created that conditioning because only then could I ever hope to have an impact on that topic.

I’m noticing a trend. A rather bothersome trend, especially amongst millennials, not to make that sound like age discrimination because it’s not exclusive to millennials. The trend is of fulfillment in how far boundaries can be pushed or made extinct in just about every area. By no means am I a traditionalist; however, pushing these boundaries seems to be done without thought to their outcomes and is thereby reckless. In many areas of society today where we experience tragedies, we first experienced the removal of a construct that would have protected us from said tragedy if not at least served to minimize it.

Let’s go back to a conversation without excuses.

We live in a time where technology can do everything except make us more intelligent or more empathetic towards each other. However, we continue to move in states of hypocrisy where we will deny our intelligence or even science for the benefit of being politically correct. Here’s where this gets ultra-uncomfortable. Try to stay with me. Sexism is the belief that one sex is superior to or more valuable than another sex and imposes limits on what men and boys can and should do and what women and girls can and should do. Again, I’m not a traditionalist, but I am a realist.

Reality shows that men and women can engage in many of the same physical activities; however, there won’t be equity in an attempt to do it on a co-ed basis. Ex. I went to an AAU basketball game. These were teenagers at the time, 14 and 15 years old, and were select teams. One of the teams had a player that was physically different from the rest, giving them a competitive advantage because this player’s nature was physically stronger, faster more dominant. The player didn’t have excellent basketball skill sets; the physical edge made the competition unjust. There was much tension in the building, as you can sense that many parents and fans did not like this allowance. No one seemed interested in taking the risk of not being politically correct. Some chatter reached the player’s parents and grandparents in the stand, who began to verbally show their support by cheering on this player. I thought, wow! In support of this player, do you understand what’s on the line for everyone else? This is where support can become blind.

This is where inclusion can be extreme. This is where we have to be honest about potential outcomes above and beyond an individual state. I want to think I’m not hypocritical in this thought. I believe some situations deem exclusion and others that though they may not deem exclusion, it should be allowed. I think back to just a few short years ago when national media took an interest in a story about an otherwise successful gentleman who was not allowed membership in a gun club because he was black. Other than the fact that there weren’t any black members, there was no documentation of the selection process, illustrating that was the reason why. So, was this racism? Or was this someone playing the quote-unquote race card? I remember my thought at the time was, “so what.” Your choice of how to spend your time and your dollar discernment is one of your most significant powers. Why would you want to use that power in a place that’s not interested in you being there when you have other options? However, this was a private club, not a public organization or association whose constructs must be reevaluated from the time they were formed to ensure they can sustain in the future. One such organization is NAEA. The premier association for enrolled agents whose licensing has no restrictions to race, sex, or age. However, there are some facts that we have to be mindful of. One of those such facts is that the IRS was not created until 1862, a short 3 1/2 years before slavery ended. The enrolled agent designation wouldn’t come about until 22 years later, in 1884, through the enabling act, also known as the horse act, whose purpose was to regulate representatives of people making claims to the treasury department.

There’s a valuable piece of history right here because the first thing we must realize is that there was a 22-year fallout after the civil war in which the treasury department was still feeling the impact, much like I believe we will as a result of the policies from COVID. Also, it’s worth noting that a standard was created with suitability checks and criminal records, moral characters, and all these factors along with testing in that those who passed the test became known as enrolled agents. Yet, it would be another 110 years before the initials EA was designated by the Treasury Department as that of the enrolled agent. But this designation, created in 1884, allowed you to represent someone before the IRS, not that of an attorney or a CPA, which didn’t come about until 12 years later. In fact, it’s been said that in the 1880s, you did not even have to finish high school, let alone go to college, to become an attorney or a CPA. You simply apply to the school of your choice and, if accepted, you went no other regulation. Some would argue that AICPA was formed earlier, in 1887, but it doesn’t change the fact that it was after the Enrolled Agent. What does matter is that AICPA had an 85-year head start on NAEA, which still shows up as a different organization when only the initials are searched.

Some additional interesting considerations is why an organization that wasn’t formed until just over fifty years ago lacks DEI. As I stated earlier, policies and actions do not change attitudes, and the attitudes in 1972 were not far different from 1965. Add to that the license originated from representing people who had claims for losses in the civil war for horses, timber, land, and yes, even slaves. So how many black people do you think required representation before the IRS at such a time? And so, I find myself not only defending myself as a black man but also defending my license and designation amongst other industry designations who simply had a better marketing strategy and a significant head start. Did you know that the first black attorney was Macon Bolling Allen, who lived from 1816 to 1894? Very easy Google search. In 1921 only 25 years after the first CPA certificate was granted, John M Cromwell Jr. became the first black CPA. You can find the first black American to do just about any professional occupation with a straightforward search except that of the first black enrolled agent. Why is that?

A September 9th, 2022, article on zippia.com shows that 55% of enrolled agents are women, that most enrolled agents are north of 40 years old, and that only 9% of the enrolled agent population are African Americans. That isn’t the smallest race representation within the population, but African Americans represent the lowest average salary of enrolled agents. Guess who’s at the bottom of the list?

I am not a DEI scholar, nor have I enough substantiated experiences to be considered an authority in the space. However, I am a student immersed in learning and feel a responsibility to contribute to the conversation from the lens of those I represent. I’ve shared some additional resources via one of my mentors Jason R. Lambert, Ph.D. (he/him/his) Chair, Chancellor’s Diversity, Equity, & Inclusion Council Texas Woman’s University.

https://neworleanscitybusiness.com/blog/2021/09/17/the-great-resignation-could-microaggressions- play-a-role-at-your-company/

 

Gavino, M., Lambert, J., & Akinlade, D. (2021). Diversity Climate of Respect and the Impact on Faculty Extra Role Behaviors. Journal of Business Diversity, 21(3), 97-114.

Leopold, J., Lambert, J., Ogunyomi, I., & Bell, M.P. (2021). The hashtag heard round the world: How #MeToo did what laws did not. Equality, Diversity, and Inclusion: An International Journal, 40(4), 461- 476.

George Dandridge Jr., Ph.D., EA, CTC

ERTC News

Infrastructure Bill Impacts ERTC – The infrastructure bill signed into law by President Biden on November 15 includes a provision that will end the Employer Retention Tax Credit (ERTC) early for many businesses. The bill ends the credit as of September 30, 2021, instead of at the end of 2021. There is a caveat to the new ERTC provision; Recovery Startup Businesses (RSBs) will still be eligible to receive ERTC through the end of the year.

While the credit is ending a quarter early, businesses will continue to be able to file retroactively for the tax credit for 2020 and the first three quarters of 2021.  Businesses will be allowed to file these amended returns for up to three years from the due date of the original return.

The ERTC was originally created by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, and amended by the Consolidated Appropriations Act, 2021. The American Rescue Plan, enacted in March of this year, extended the credit to eligible employers through the third and fourth quarters of 2021. The infrastructure bill repeals the fourth quarter extension.

The provision in the infrastructure bill had put some employers in a precarious position, being unsure if they should claim the ERTC for the 4th quarter with the legislation pending.  With that question now answered, those that have already claimed part of the credit for the 4th quarter will have to assess their next steps and await any guidance.

In early August, the IRS issued guidance on claiming the credit in the third and fourth quarters of 2021 (Notice 2021-49), and noted at the time that it was watching this legislative development. The IRS has yet to release additional guidance for businesses that will be affected by the retroactive date.