The IRS is acknowledging Small Business Week (this week) by endorsing two import ant tax credits and

a special relief program that could provide major tax benefi ts this year. The two tax credits- one for hiring veterans and one for employer-provided healt h care reduce taxes for small businesses when they file their 2012 federal incom e tax returns. Tax Credit for Hiring Veterans The Work Opportunity Tax Credit gives employers a chance to receive tax credit i f they hire eligible unemployed veterans. For-profit employers can receive up to $9,600 per veteran and tax-exempt organizations can receive up to $6,240 per ve teran. The refund is contingent upon many different factors, including how long the veteran was unemployed before being hired, how many hours they work, and the ir first year income. Businesses who hire veterans with service related injuries qualify for the biggest tax credits. Employers must certify these new hires in order to get the credit. Typically, em ployers file a Form 8850 with the state workforce agency within 28 days after th e employee is hired. However, under a special rule, employers have until June 19 , 2012, to complete and file this form if a veteran was hired on or after Nov. 2 2, 2011, and before May 22, 2012. The 28-day rule will again apply to eligible v eterans hired on or after May 22. The form can be submitted electronically or fa xed. Businesses use Form 5884 and Form 3800 to claim the tax credit. Tax exempt organ izations use a different claim procedure through Form 5884-C. Details are on IRS .gov. Tax Credit For Small Businesses that Provide Health Care Small businesses that provide 50 percent or more of employee health insurance pr emiums may be eligible for the small business health care tax credit. Started tw o years ago, the credit is manufactured to entice small employers to begin to of fer healthcare or maintain coverage they already have. Small businesses can claim the credit from 2010 to 2013 and beginning in 2014, t wo additional years. Geared towards small businesses that primarily employ low-a nd moderate-income workers, the maximum credit, in tax-years 2010 through 2013, is 35 percent of premiums paid by small businesses and 25 percent of premiums pa id by tax-exempt organizations, increasing to 50 percent and 35 percent in 2014. Employers can claim the credit on their income tax return using Form 8941 and Fo rm 3800. Tax-exempt organizations also use Form 8941 and then claim the credit o n Form 990-T. Recently, the Small Business Health Care Tax Credit page re-emerged on IRS.gov a nd is filled with info and guides created to aid small businesses in figuring ou t if they qualify for the credits. The page includes a step-by-step guide for fi guring out eligibility, examples, FAQ s, YouTube videos and a webinar. If you or your small business is in trouble with the IRS, do not hesitate to cal l the professionals at JG Tax Group. With over 120 years combined IRS experience , we can help you secure and repair your finances and assets.