INCOME TAX

REG–100194–10, page 891. Proposed regulations under section 6011(e)(3) of the Code relate to the requirement for “specified tax return preparers,” generally tax return preparers who reasonably expect to file more than 10 individual income tax returns in a calendar year (100 or more in 2011), to file individual income tax returns using magnetic media (electronically). A public hearing is scheduled for January 7, 2011.

Notice 2010–82, page 857. Section 45R provides a Federal income tax credit 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 and for meeting the qualifying arrangement requirement for the credit. Notice 2010–44 amplified.

Notice 2010–85, page 877. This notice contains a proposed revenue procedure that provides guidance to specified tax return preparers regarding the procedures to request a waiver of the magnetic media (electronic) filing requirement, due to undue hardship, under section 6011(e)(3) of the Code and proposed section 301.6011-6 of the Regulations on Procedure and Administration, which is being published contemporaneously with this notice. The proposed revenue procedure also provides guidance regarding how to document a taxpayer’s choice to file the taxpayer’s individual income tax return in paper format when the return is prepared by the preparer but filed by the taxpayer.