Daily Tax Update - May 17, 2010

IRS ISSUES GUIDANCE ON NEW SMALL BUSINESS HEALTH CARE TAX CREDIT: Today, the IRS issued Notice 2010-44, which makes it easier for small businesses to determine whether they are eligible for the new health care tax credit under the Affordable Care Act and how large a credit they will receive. A Federal income tax credit is available to certain small employers that make nonelective contributions towards their employees' health insurance premiums under an arrangement that meets certain requirements. The Notice provides guidance on the credit, including guidance for determining eligibility for the credit, calculating the credit and claiming the credit.

FINANCE NAMES CHIEF TAX COUNSEL: Today, Senate Finance Committee Chairman Max Baucus named Lily Batchelder as Chief Tax Counsel for the Senate Finance Committee. Baucus said, “I’m glad to welcome Lily back to the Senate Finance Committee’s tax team. Lily’s wide range of experience and expert knowledge of tax and public policy make her an invaluable advisor to the Finance Committee as we continue our efforts to create jobs, help small businesses grow, close the tax gap and explore tax reform. I’m pleased to have Lily on board and know she’ll be a real asset to the Committee.” Batchelder currently serves as a Professor of Law and Public Policy at New York University School of Law, as Affiliated Faculty at New York University Wagner School of Public Service and as an Affiliated Scholar with the Urban-Brookings Tax Policy Center. 

TAX BILL INTRODUCED MAY 14^TH:
H.R.5318: To amend the Internal Revenue Code of 1986 to waive the 10-percent penalty on early distributions from individual retirement plans for small business investments.
Sponsor: Rep Gingrey, Phil [GA-11] (introduced 5/14/2010)      Cosponsors (12)

INTERNAL REVENUE SERVICE - CIRCULAR 230 DISCLOSURE:
As provided for in Treasury regulations, advice (if any) relating to federal taxes that is contained in this communication (including attachments) is not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any plan or arrangement addressed herein.

STEPTOE & JOHNSON LLP - TAX PRACTICE
Steptoe & Johnson LLP has one of the largest and most diverse law firm tax practices in the country. The practice covers the entire spectrum of federal taxation, including representation of businesses before the Congress, Treasury and the national office of the IRS; transactional planning for domestic and multinational corporations; complex audit and controversy work for corporations and other business interests contesting IRS adjustments; litigation before the Tax Court, Court of Federal Claims, district courts, courts of appeals and the Supreme Court. The firm's tax practice also encompasses all aspects of employee benefits (ERISA), executive compensation, tax-exempt organizations and charitable giving. Steptoe has an extensive state and local tax practice, representing an array of business clients on complex sales and use tax, corporate income tax and property tax matters, both advising those clients and handling audits, administrative appeals, and litigation for them. Read more information on Steptoe's tax practice.

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