Tuesday, September 14, 2010

IRS News and Events from Stakeholder Liaison

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Newsroom                                                                   September 13, 2010


IRS Releases Form to Help Small Businesses Claim New Health Care Tax Credit
IR-2010-96 Sept. 7, 2010 –– The IRS also provided tax-exempt organizations with the information they need to claim the credit.

IRS Issues Guidance Explaining 2011 Changes to Flexible Spending Arrangements
IR-2010-95, Sept. 3, 2010 — The IRS today issued guidance on the use of certain tax-favored arrangements, such as flexible spending arrangements (FSAs), to pay for over-the-counter medicines and drugs.

IRS Seeks New Issues for the Industry Issue Resolution Program
IR-2010-93, August 27, 2010 — The IRS is encouraging business taxpayers, associations and other interested parties to submit to the Industry Issue Resolution (IIR) program.


Headliners & Technical Guidance


Headliner Volume 301, August 31, 2010 - New Audit Video Series Helps Small Business Taxpayers Understand the Process


Notice 2010-62 provides interim guidance regarding the codification of the economic substance doctrine under section 7701(o) and the related amendments to the penalties under sections 6662, 6662A, 6664, and 6676 by section 1409 of the Health Care Education Reconciliation Act of 2010.


Notice 2010-59 provides guidance on new section 106(f) of the Internal Revenue Code, added by section 9003 of the Affordable Care Act.  That section sets forth a new standard, effective Jan. 1, 2011, for reimbursement of expenses for over-the-counter drugs from all workplace health plans, including flexible spending arrangements (FSA), health reimbursement arrangements (HRA), Health Savings Accounts (HSA) and Archer Medical Savings Accounts (Archer MSA). As a result of new section 106(f), the cost of over-the-counter medicines cannot be reimbursed from any of these tax-free arrangements unless the medicine is prescribed. This standard applies to purchases made on Jan. 1, 2011, or later -- even if the funds were set aside in 2010.


Revenue Ruling 2010-23 is also being released that obsoletes Rev. Rul. 2003-102, prior guidance on reimbursing expenses for over-the-counter drugs from employer health plans.


Pre Order the Tax Calendar for Small Businesses and Self-Employed

The 2011 Tax Calendar is available for pre-order. If you order now, the English version of the 2011 Tax Calendar will be shipped by early November. The Tax Calendar for Small Businesses and Self-Employed (Pub 1518, Catalog Number 12350Z) is a 12-month wall calendar.  Copies can be ordered online or from the IRS by calling (800) 829-3676.




National/Local Phone Forums and Webinars & IRS Live


Employee Plans - Phone Forums

·         Basics of Roth Conversions/Retirement Planning - September 30, 2010



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