Daily Tax Update - November 15, 2007

REID SAYS SENATE MAY ACT ON AMT PATCH BEFORE THANKSGIVING:  Today, Senate Majority Leader Harry Reid (D-NV) said that he may keep the Senate in session through this weekend to finish work on an Iraq War spending bill and that if that happens, the Senate could also move on a one-year patch of the alternative minimum tax before the Thanksgiving recess. Reid had previously said that the Senate would not act on the AMT patch before the Thanksgiving break. Reid and other Senate Democrats appear to be willing to waive the pay/go requirements for a $50 billion, one-year patch of the alternative minimum tax. Reid said, “We can do nothing, we can pay for it, we can pay for it partially. What I think we should do is find out what the committee can come forward with as to how it can be paid for and move from there." Senate Finance Committee ranking member Charles Grassley (R-IA) said that a possible compromise would be to offset the extenders but not the AMT patch.

IRS IN SEARCH OF TAXPAYERS DUE REFUND CHECKS:  The IRS is looking for 115,478 taxpayers who are due refund checks worth about $110 million after the checks were returned as undeliverable. The refund checks, averaging about $953, can be claimed as soon as taxpayers update their addresses with the IRS. The IRS said that some taxpayers have more than one check waiting.

• Richard Morgante, commissioner of the IRS Wage and Investment Division said, “Taxpayers should not miss out on getting their money back. The IRS makes it as easy as possible for taxpayers to update their addresses and claim their refunds.”
• Additional information can be accessed via: http://www.irs.gov/individuals/article/0,,id=96596,00.html

The November edition of Steptoe & Johnson's UK Tax Law Update can be accessed via: http://www.steptoe.com/attachment.html/3243.pdf

TAX BILLS INTRODUCED NOVEMBER 14^TH:
H.R.4172: To amend the Internal Revenue Code of 1986 and the Economic Growth and Tax Relief Reconciliation Act of 2001 to restore the estate tax and repeal the carryover basis rule and to increase the estate tax unified credit to an exclusion equivalent of $3,500,000.
Sponsor: Rep Moore, Dennis [KS-3] (introduced 11/14/2007)      Cosponsors (None)

 S.2351: A bill to amend the Internal Revenue Code of 1986 to provide a tax credit for medical research related to developing qualified infectious disease products.
Sponsor: Sen Schumer, Charles E. [NY] (introduced 11/14/2007)      Cosponsors (None)

INTERNAL REVENUE SERVICE - CIRCULAR 230 DISCLOSURE:
As provided for in Treasury regulations, advice (if any) relating to federal taxes that is contained in this communication (including attachments) is not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any plan or arrangement addressed herein.

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