Daily Tax Update - May 5, 2008

FARM BILL CONFEREES WORK TOWARD FINAL AGREEMENT:  House and Senate farm bill conferees are expected to approve the tax title and the full conference report this week. The latest extension of the 2002 farm bill expires May 16. The President has said that he would veto a bill if it did not include the farm reforms he supports.

• The bill contains approximately $1.4 billion in tax incentives. Those provisions would reduce the amount of Schedule F losses nonfarmers can deduct from nonfarm income, cut the tax credit for corn-based ethanol while raising the credit for cellulosic ethanol, and require information reporting for payments from the Commodity Credit Corporation.

TAX BILL INTRODUCED MAY 2nd:
S. 2971:  A bill to amend the Internal Revenue Code of 1986 to provide for a suspension of the highway fuel tax, and for other purposes.
Sponsor: Sen Clinton, Hillary Rodham [NY] (introduced 5/2/2008)      Cosponsors (1)

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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