In April 2010, the IRS released a draft of Schedule UTP, a new form requiring reporting of uncertain tax positions effective for 2010. If adopted, this schedule will be a significant expansion of previous reporting requirements and could prove burdensome and costly to many businesses. With this in mind, Baker Tilly submitted formal comments and recommendations to the IRS to recommend against the imposition of this schedule on small and mid-sized businesses.

In November 2007, the Department of Labor (DOL) issued amended regulations eliminating an exemption granted to 403(b) plans from the annual Form 5500 reporting, disclosure, and audit requirements. This exemption removal subjects ERISA-covered 403(b) plans to the same Form 5500 reporting and audit requirements as 401(k) plans, effective with their 2009 Form 5500 filings. This alert provides detailed information about the upcoming changes to the 403(b) plan and how it may affect you and your business.

The US Treasury Department released twenty-five questions and answers related to the “beginning of construction" requirement for applicants seeking to receive the thirty percent grant in lieu of tax credit under the Section 1603 program. The guidance, released June 25, 2010, provides additional clarity regarding how Treasury will view certain activities by applicants as they seek to meet the “beginning of construction" requirement by December 31, 2010.