Deadlines Extended for Certain Retirement Plans in Eight States

In Notice 2010-48, the IRS provides administrative relief for sponsors of defined contribution plans, such as §401(k) plans, that were affected by the storms and other severe weather in those counties in Alabama, Connecticut, Massachusetts, Mississippi, New Jersey, Rhode Island, Tennessee, and West Virginia declared Presidential Disaster Areas during the period from March 1 through May 31, 2010.

Notice 2010-48 extends the April 30 deadline for restating affected pre-approved defined contribution plans and, if applicable, for submitting determination letters to the IRS, to July 30, 2010.

Tax credit debuts for life science firms

A federal tax credit that aims to spur more research and development on the best ways to treat chronic diseases will soon be available to Massachusetts’ life science companies.

Starting today, the Therapeutic Tax Credit is a two-year credit that businesses with 250 or fewer employees can apply for through the US Treasury Department.

Senator John F. Kerry said the credit will help create jobs in the life, biological, and medical sciences sectors.

Robert K. Coughlin, president and chief executive of the Massachusetts Biotechnology Council, said the tax credits could help companies create lifesaving cures.

Eligible companies can receive a 50 percent tax credit for qualifying projects, and a total of $1 billion will be allocated.

Companies have until July 21 to apply. Contact my office for more details.

IRS Issues Regulations on 10-Percent Tax on Tanning Services Effective July 1

WASHINGTON — The Internal Revenue Service today issued regulations outlining the administration of a 10-percent excise tax on indoor tanning services that goes into effect on July 1.

The regulations were published today in the Federal Register.

In general, providers of indoor tanning services will collect the tax at the time the purchaser pays for the tanning services. The provider then pays over these amounts to the government, quarterly, along with IRS Form 720, Quarterly Federal Excise Tax Return.

The tax does not apply to phototherapy services performed by a licensed medical professional on his or her premises. The regulations also provide an exception for certain physical fitness facilities that offer tanning as an incidental service to members without a separately identifiable fee.

The IRS and Treasury Department invite comments.

Send submissions to: CC:PA:LPD:PR (REG-112841-10), Room 5203, Internal Revenue Service, PO Box 7604, Ben Franklin Station, Washington, DC 20044.

Submissions may be hand-delivered to: CC:PA:LPD:PR Monday through Friday between the hours of 8 a.m. and 4 p.m. to: CC:PA:LPD:PR (REG-112841-10), Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue, NW; Washington, DC,

Submissions may be sent electronically via the Federal eRulemaking Portal at http://www.regulations.gov/search/Regs/home.html#home (REG-112841-10).

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