• House Sends Tax Relief Bill To Senate For Approval
• Micro-Businesses: Few Web Sites, Strong Web Presence
• IRS Offers Online Programs For Filing Season

House Sends Tax Relief Bill To Senate For Approval

The House recently approved an $82.5 billion tax measure designed to offer relief to middle-class Americans. H.R. 3996 reinstates a patch to disallow the widening reach of the Alternate Minimum Tax (AMT). The tax was originally intended to ensure the wealthiest citizens were paying tax but affects more taxpayers each year since it was not indexed for inflation. The measure passed comfortably in the House; however, it faces a tougher battle in the Senate, particularly in regards to funding. The Democrat pay-as-you-go initiative requires that any cuts be offset by tax increases elsewhere, leaving neither party able to agree on the terms for the revenue-raising. The most contentious battle within House and Senate surrounds the proposed taxation of certain funds received by business investors to 35 percent from 15 percent. The measure also renews tax provisions that are up for expiration, as well as provide cuts for low-income families and qualified homeowners. The time sensitive legislation – it must be approved soon so that rules will not affect 2008 tax refund checks – faces an uncertain future with veto threat from President Bush. Read more about the measure at http://thomas.loc.gov.

Medicare Cuts Could Affect Small Practices The Most The House Small Business Subcommittee on Regulation, Health Care and Trade offered a forum to frustrated small-practice doctors recently. Physicians testifying at the hearing warned lawmakers that Medicare reimbursement cuts may drive small practices to shut their doors. The federal government uses a system to determine reimbursement rates for providing service to Medicare recipients. However, the rise in health care costs leaves many offices scrambling to afford necessary items, such as medical malpractice insurance and reluctant to take on additional Medicare patients. Language in the House bill to reauthorize the State Children’s Health Insurance Program (SCHIP) would have blocked the scheduled 10 percent cut for an additional two years, but was eventually removed. Several lawmakers, led by Rep. Michael Burgess (R-Texas), have supported a bill to eliminate the cost structure analysis used to determine Medicare reimbursement. IRS Offers Online Programs For Filing Season Tax and finance professionals looking for the latest updates on filing can earn Continuing Education credits online. The IRS Tax Talk Today Web site (no relation to NASE’s Tax Talk program), delivers online tax-related topics each month from guidelines for exempt organizations to debunking independent contractor versus employee classification. Professionals and nonprofessionals can tune into the site’s live internet broadcasts or download archived programs or podcasts. Upcoming topics include the following: Tuesday, December 11, 2007 Getting Ready for Filing Season 2008 - Part 1 (Individuals) 2:00 p.m. - 3:00 p.m. ET Tuesday, January 8, 2008 Getting Ready for Filing Season 2008 - Part 2 (Business) 2:00 p.m. - 3:00 p.m. ET Find more information about CE credits, future webcasts and archived programs by visiting the IRS Tax Talk Today site at http://www.taxtalktoday.tv. For free tax and business advice from NASE experts, visit http://news.nase.org/advice.asp. Washington Watch Online Visit the NASE Advocacy Web page to view archived editions of Washington Watch. While you’re there, read the latest updates from the Washington, D.C. office, write your Congressperson, and find out how you can join the fight for micro-business. Web site: http://advocacy.NASE.org.