The Internal Revenue Service is encouraging small businesses to take advantage of tax-saving opportunities included in recently enacted federal legislation, including the American Recovery and Reinvestment Act of 2009, the Hiring Incentives to Restore Employment Act and the Affordable Care Act.

IRS says that because some of these changes are only available this year, eligible businesses only have a few months to take action and save on their taxes. It also has issued the newly revised payroll tax form that most eligible employers can use to claim the special 6.2 percent payroll tax exemption that applies to many new workers hired during 2010, as well as instructions and FAQs on the tax credit.

IRS has also issued a guidance on the tax credit for small employers providing health coverage to employees.