Daily Tax Update - May 30, 2008

THE DAILY TAX UPDATE WILL BE PUBLISHED ON A PERIODIC BASIS UNTIL CONGRESS RETURNS FROM ITS MEMORIAL DAY RECESS ON JUNE 3RD.

TAX REGULATIONS NOT AFFECTED BY ADMINISTRATION’S RESTRICTIONS ON REGULATIONS:  The Bush Administration has sent a memo to all federal agencies stating that “except in extraordinary circumstances” they should refrain from proposing regulations after June 1 and issuing final regulations after November 1. However, a Treasury spokesperson clarified that the Administration’s directive was not expected to affect the normal process of Treasury and the IRS issuing business plan guidance.

Chief of Staff Josh Bolton’s memo said, “Every regulatory agency and department has a responsibility for continuing to ensure regulations in this final year are in the best interests of the American people. To the extent permitted by law, the heads of executive departments and agencies should continue to minimize costs and maximize benefits for each of their upcoming regulations, and should avoid issuing regulations that are unnecessary.” The memo added, “However, I also want to emphasize that nothing in this memorandum alters or impedes the ability of the executive departments and agencies to perform their responsibilities under existing law.”

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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