Daily Tax Update - March 31, 2008

CONGRESS RETURNS TO FOCUS ON BUDGET RECONCILIATION ISSUES: Today, Congress returns from its two-week spring recess and will begin the process of reconciling their versions of the Fiscal Year 2009 budget resolution. The House budget resolution includes “reconciliation” instructions to produce filibuster-proof Medicare and alternative minimum tax measures. The Senate version does not include reconciliation. Both resolutions include language to extend expiring business tax cuts another year and offer alternative energy tax breaks and education tax incentives. 

USE OF FREE FILE GROWING:  According to the IRS, the number of tax returns filed via Free File as of the end of February has jumped more than 12 percent compared with the same period last year. Free File is run by the IRS and the Free File Alliance, LLC, a private-sector consortium of tax software companies. Over 22 million taxpayers have used Free File since its inception.

• The IRS stated, “Free File provides an opportunity for taxpayers to prepare and file their tax returns electronically for free. Free File is also available to individuals who normally do not file a tax return but must do so this year in order to qualify for the economic stimulus payment.”

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.

STEPTOE & JOHNSON LLP - TAX PRACTICE
Steptoe & Johnson LLP has one of the largest and most diverse law firm tax practices in the country. The practice covers the entire spectrum of federal taxation, including representation of businesses before the Congress, Treasury and the national office of the IRS; transactional planning for domestic and multinational corporations; complex audit and controversy work for corporations and other business interests contesting IRS adjustments; litigation before the Tax Court, Court of Federal Claims, district courts, courts of appeals and the Supreme Court. The firm's tax practice also encompasses all aspects of employee benefits (ERISA), executive compensation, tax-exempt organizations and charitable giving. Steptoe has an extensive state and local tax practice, representing an array of business clients on complex sales and use tax, corporate income tax and property tax matters, both advising those clients and handling audits, administrative appeals, and litigation for them. Read more information on Steptoe's tax practice.

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