The IRS has posted a draft of Form 8941 on IRS.gov. Both small businesses and tax-exempt organizations will use the form to calculate the credit. A small business will then include the amount of the credit as part of the general business credit on its income tax return.

Tax-exempt organizations will instead claim the small business health care tax credit on a revised Form 990-T. The Form 990-T is currently used by tax-exempt organizations to report and pay the tax on unrelated business income. Form 990-T will be revised for the 2011 filing season to enable eligible tax-exempt organizations –– even those that owe no tax on unrelated business income –– also to claim the small business health care tax credit.

The final version of Form 8941 and its instructions will be available later this year.

The small business health care tax credit was included in the Affordable Care Act signed by the President in March and is effective this year. The credit is designed to encourage small employers to offer health insurance coverage for the first time or maintain coverage they already have.

In 2010, the credit is generally available to small employers that contribute an amount equivalent to at least half the cost of single coverage towards buying health insurance for their employees. The credit is specifically targeted to help small businesses and tax-exempt organizations that primarily employ moderate- and lower-income workers.

For tax years 2010 to 2013, the maximum credit is 35 percent of premiums paid by eligible small business employers and 25 percent of premiums paid by eligible employers that are tax-exempt organizations. Beginning in 2014, the maximum tax credit will go up to 50 percent of premiums paid by eligible small business employers and 35 percent of premiums paid by eligible, tax-exempt organizations for two years.  The maximum credit goes to smaller employers ¬¬–– those with 10 or fewer full-time equivalent (FTE) employees ––¬¬ paying annual average wages of $25,000 or less.

The credit is completely phased out for employers that have 25 FTEs or more or that pay average wages of $50,000 per year or more. Because the eligibility rules are based in part on the number of FTEs, and not simply the number of employees, businesses that use part-time help may qualify even if they employ more than 25 individuals.

More information about the credit, including a step-by-step guide and answers to frequently asked questions, is available on the Affordable Care Act page on the IRS website.

The Business Credit Advantage also  includes reported changes to a business’s address. This type of event is not directly related to a business’s credit standing, but it is a key indicator of potential fraudulent activity. With early notification of this change, business owners receive an additional layer of fraud protection while proactively monitoring the health of their business profile.

A subscription to Business Credit Advantage also provides business owners with unlimited access to their business credit report, score and score trends. It is available at http://www.experian.com/businesscreditadvantage.

Yahoo! sites (up 0.6 percentage points to 18.9%) came in second, and Microsoft sites (up 0.6 percentage points to 12.7%). Both Yahoo! sites and Microsoft sites have experienced gains due in part to the continued utilization of contextual search approaches that tie content and related search results together. Ask Network captured 3.6 % of the search market, followed by AOL LLC with 2.2%.

The scorecard, as well as a detailed explanation of the new scorecard methodology, is available online: http://www.sba.gov/aboutsba/sbaprograms/goals/index.html.

“We are honoring the Hughes Group today for its extraordinary commitment to excellence in providing innovative products and services to the federal government and commercial markets,” said SBA Administrator Karen G. Mills. “Mr. Hughes’ commitment to excellence has made his small business the third fastest growing minority business in Washington state and has helped spur job creation in the small business community and the nation’s economy,” Mills continued.

The veteran-owned company was established in 1999 by Hughes, a veteran of 28 years in the military. It is certified as an 8(a) and HUBZone-certified firm, and is classified as a small disadvantaged business and a service disabled veteran-owned small business.

The Hughes Group provides aircraft, administrative and training, integrated logistics and information technology solutions to the armed forces and business community. Its wide range of services to the federal government and major private sector companies includes aircraft refueling and maintenance, postal services, personnel placement, property book management, food services, web hosting and design, and help desk support. 

Clients include the departments of the Army, Veterans Affairs, Air Force, Homeland Security, the Washington National Guard, Lockheed Martin, Honeywell, the Federal Aviation Administration and the National Industries for the Severely Handicapped.

The Hughes Group was chosen from a group of 10 regional winners representing Massachusetts, New York, Virginia, North Carolina, Michigan, Texas, Nebraska, Utah, California and Washington. 

This year’s MED Week event is a collaboration with the Minority Business Development Agency of the U.S. Department of Commerce and the SBA, with an emphasis on helping minority small businesses expand their operations and establish a presence in the global marketplace through exporting.

For more details on this year’s MED Week conference, please visit www.medweek.gov or www.sba.gov/medweek2010.

ICIC, which educates investment-ready inner city companies about equity and other sources of growth capital and matches them with potential investors, will hold its sixth annual ICCC investment capital matchmaking program in Los Angeles Nov. 15-16. The event will feature a full-day matchmaking session with potential investors, along with workshops and assessments of investment potentials. Preparation sessions for inner city businesses from around the country that plan to take part in the event will take place Oct. 11 in New York and Oct. 27 in Los Angeles.

To be eligible for the program, companies must be headquartered in or have 51% or more of a physical operations presence in an economically distressed urban area and be a for-profit corporation, partnership, or proprietorship with revenues of more than $2 million in 2009.  More than 75 companies, in various industries ranging from technology, business services and manufacturing, participated in the program last year.

“Access to capital is critical to small business growth and job creation in America’s inner cities,” said SBA Administrator Karen Mills. “Supporting these entrepreneurs is at the core of SBA’s mission and an essential component of keeping our economy moving in the right direction. SBA is proud to play a role in facilitating connections between investors and emerging inner city entrepreneurs and to accelerate opportunities for small businesses in these markets.”

Established in 2005 by the Initiative for a Competitive Inner City and Bank of America, ICCC is a free program designed to stimulate capital flow to inner city businesses.

Under the proposed regulations, compensated tax return preparers will need to obtain, or reapply for, a PTIN and pay a user fee using this new comprehensive system, which is part of a series of steps planned to increase oversight of federal tax return preparation. Tax return preparers will be creating PTIN accounts with the IRS when they use the new system.

Compensated tax return preparers would pay a $64.25 user fee the first year for a PTIN based on two underlying costs. The IRS proposes to collect $50 per user to pay for outreach, technology, and compliance efforts associated with the new program. And the third-party vendor will receive $14.25 per user to operate the online system and provide customer support.

Under the proposed regulations, compensated tax return preparers will be required to renew their PTINs annually and pay the associated user fee. The amount of the fee may change in future years as the actual program costs are periodically reevaluated.

Under the proposed regulations, the requirement to sign up on the new system will apply to all compensated tax return preparers of federal tax returns regardless of whether they currently possess a PTIN. Tax return preparers who already have a PTIN generally will be reassigned the same number.  Any individual who plans to prepare all or substantially all of a tax return for compensation must obtain a PTIN even if the individual is not subject to the testing and continuing education requirements that will be required under Circular 230, according to the IRS’ proposed regulation.  Access to the online application system will be through the Tax Professionals page of IRS.gov.

The IRS previously announced its portion of the total annual fee in proposed regulations (REG-139343-08) and interested parties have until Aug. 23, 2010, to submit comments on the regulations.  A hearing on the proposed regulations is scheduled for Aug. 24, 2010.  The launch of the new online application system and proposed user fees are dependent on the publication of final regulations on user fees and final regulations of the requirement to obtain a PTIN.

The proposed regulations (REG 153340-09) would eliminate the rules for making federal tax deposits by paper coupon because the paper coupon system will no longer be maintained by the Treasury Department after Dec. 31, 2010. The proposed regulations generally maintain existing rules for depositing federal taxes through the Electronic Federal Tax Payment System (EFTPS).

Using EFTPS to make federal tax deposits provides substantial benefits to both taxpayers and the government. EFTPS users can make tax payments 24 hours a day, seven days a week from home or the office.

Deposits can be made online with a computer or by telephone. EFTPS also significantly reduces payment-related errors that could result in a penalty. The system helps taxpayers schedule dates to make payments even when they are out of town or on vacation when a payment is due. EFTPS business users can schedule payments up to 120 days in advance of the desired payment date.

Information on EFTPS, including how to enroll, can be found at www.eftps.gov or by calling EFTPS Customer Service at 1-800-555-4477.

Some businesses paying a minimal amount of tax may make their payments with the related tax return, instead of using EFTPS. More details regarding taxes required to be deposited using EFTPS, dollar thresholds and other specific requirements are in the proposed regulations.

“Understanding Disaster Assistance Funding with the SBA” will be hosted by Agility Recovery Solutions on Tuesday, August 24 at 2 p.m., EDT.  During the live, interactive webinar James Rivera, SBA’s associate administrator for the Office of Disaster Assistance will explain how the loan program works, how a disaster declaration is made, and the steps to take to apply for a loan.  

SBA has partnered with Agility Recovery Solutions to offer business continuity strategies for small business owners via their “PrepareMyBusiness” website (www.preparemybusiness.org).  Visit the website to access previous webinars, and to learn more about disaster preparedness.

Register in advance for “Understanding Disaster Assistance Funding with the SBA”  by visiting Agility’s “Prepare My Business” website at www.preparemybusiness.org/education.

During the mentor-protégé conference, small business owners can connect with mentors — virtually and face-to-face — and learn about government contracting, financial, technical and management assistance, as well as joint-venture opportunities.

The day-long conference will also include workshops on “Succeeding in a Tough Construction Market” and “SBA Surety Bond.”  Small businesses interested in participating in the matchmaking events can register at sba.mybusinessmatches.com.  For more information on other MED Week workshops, or to register for the conference, visit www.medweek.gov.

MED Week is a collaboration with the Minority Business Development Agency of the U.S. Department of Commerce and the SBA.  The theme for this year’s MED Week event is “Strategies for Growth and Competitiveness in the Global Economy.”  The conference will focus on helping minority small businesses expand their operations and establish a presence in the global marketplace through exporting.

Another event highlight will be the recognition of the National Minority Small Business Person of the Year.  The national winner will be chosen from 10 regional winners representing Massachusetts, New York, Virginia, North Carolina, Michigan, Texas, Nebraska, Utah, California, and Washington.  Regional award winners have businesses that offer services ranging from environmental technology solutions to recruiting medical professionals who work for the military and other public institutions. 

“This year’s MED Week event offers an opportunity to celebrate the positive impact minority small business owners have on their communities across the country as well as an opportunity for small businesses to learn critical tips for taking their business global,” said SBA Administrator Karen G. Mills. 

In addition to announcing the national minority small business award winner, SBA will present the SBA Administrator’s Leadership award to Jeanette Brown of the U.S. Environmental Protection Agency in Washington, D.C.  The 8(a) Graduate Firm of the Year award will be presented to Edward O. Watts, president of Watts Architecture & Engineering, P.C., of Buffalo, N.Y. 

The 10 Regional Minority Small Business Persons of the Year are:

• Region I: Janet Ceddia, president, Security Construction Services, Inc., Boston;

• Region II: Shandra Roberson, S & W Contracting of Western New York, Inc., Buffalo, N.Y.;

• Region III: Michael E. Melo, ITA International, LLC, Yorktown, Va.;

• Region IV: Melissa A. Leifheit, Military & Federal Construction Company, Inc., Jacksonville, N.C.;

• Region V: Perry Mehta, president, FutureNet Group, Inc., Detroit;

• Region VI: Veronica Edwards, InGenesis, Inc., San Antonio, Texas;

• Region VII: Lance G. Morgan, All Native Services Company, Winnebago, Neb.;

• Region VIII: Denise Mitchell, managing member, Advanced Solutions Group, LLC, Kaysville, Utah;

• Region IX: Marty Rapozo, president, Abide International, Sonoma, Calif.;

• Region X: Patrick L. Hughes, owner/managing member, Hughes Group LLC, Lakewood, Wash.

For more details on this year’s MED Week conference, please visit www.sba.gov/medweek2010, or www.medweek.gov.