Daily Tax Update - September 12, 2008

TREASURY, SMALL BUSINESS ADMINISTRATION ANNOUNCE NEW WEBSITE: Today, the Treasury Department and the Small Business Administration announced a new website that provides small businesses with information on how Health Savings Accounts (HSAs) can help meet their employees’ health care needs. The new website, http://www.hsa.gov/, presents the advantages of HSAs, provides comparisons to other health coverage options, and has other materials to help employers and individuals determine whether and how to enroll in HSA-eligible coverage and how to save for health care costs through an HSA.

STEPTOE ATTORNEY PUBLISHES ARTICLE ON WELLNESS PROGRAMS:  Steptoe & Johnson LLP tax partner, Anne Moran published an article titled “Wellness Programs: What’s Permitted?” in the Fall 2008 edition of the Employee Relations Law Journal. Moran wrote, “Many employers have implemented wellness programs and this trend is likely to continue. The DOL Web site provides a helpful guide to follow for employers who are considering a wellness program, but employers need to consider other issues—such as the Americans with Disabilities Act—when designing these programs.” 

• For additional information, contact Anne E. Moran - amoran@steptoe.com

MISCELLANEOUS GUIDANCE ISSUED TODAY: 

• Guidance regarding WHFITs:  Notice 2008-77 informs trustees and middlemen of widely held fixed investment trusts (WHFITs) that the Internal Revenue Service (Service) will not assert penalties under § 1.671-5(m) of the Income Tax Regulations with respect to calendar year 2008. This notice also informs trustees and middlemen of widely held mortgage trusts (WHMTs) that, pending future published guidance, certain modifications of mortgages held by a WHMT that has entered into a guarantee arrangement are not required to be reported under the WHFIT reporting rules.

TAX BILLS INTRODUCED SEPTEMBER 11^TH:
H.R.6876: To amend the Internal Revenue Code of 1986 to increase the credit amount for new qualified fuel cell motor vehicles with gross vehicle weight ratings of more than 26,000 pounds.
Sponsor: Rep Kagen, Steve [WI-8] (introduced 9/11/2008)      Cosponsors (None)

H.R.6880: To amend the Internal Revenue Code of 1986 to allow an individual a credit against income tax for uncompensated losses from damage to such individual's principal residence by reason of Hurricane Gustav to the extent such losses are uncompensated by reason of the deductible on the individual's homeowner's insurance.
Sponsor: Rep Cazayoux, Donald J., Jr. [LA-6] (introduced 9/11/2008)      Cosponsors (None)

S.3478: A bill to amend the Internal Revenue Code of 1986 to provide incentives for the production of energy, to provide transportation and domestic fuel security, and to provide incentives for energy conservation and energy efficiency, and for other purposes.
Sponsor: Sen Baucus, Max [MT] (introduced 9/11/2008)      Cosponsors (1)

S.3481: A bill to amend the Internal Revenue Code of 1986 to provide a temporary increase in the new qualified hybrid motor vehicle credit for school buses.
Sponsor: Sen Schumer, Charles E. [NY] (introduced 9/11/2008)      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.

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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