Daily Tax Update - October 17, 2008

THE DAILY TAX UPDATE WILL BE PUBLISHED ON A PERIODIC BASIS UNTIL CONGRESS RETURNS JANUARY 4, 2009. 

WAYS AND MEANS COMMITTEE SCHEDULES HEARING NEXT WEEK ON ECONOMIC STIMULUS PACKAGE:  On October 29, the House Ways and Means Committee will hold a hearing on a new economic stimulus package.  House Speaker Nancy Pelosi has said that she may call the House back into session after the November elections to work on a new stimulus package.  Pelosi said earlier this week that she is willing to consider additional tax rebates but questioned the "bang for the buck" of such rebates.

• Although specifics of the new stimulus package haven’t been released, it is expected to contain infrastructure improvement provisions as well as extending unemployment benefits. 

MISCELLANEOUS GUIDANCE ISSUED THIS WEEK:

Announcement 2008-94 announces the Twenty-First Institute on Current Issues in International Taxation, jointly sponsored by the Internal Revenue Service and The George Washington University Law School.

Revenue Ruling 2008-50 (released today) provides various prescribed rates for federal income tax purposes including the applicable federal interest rates, the adjusted applicable federal interest rates, the adjusted federal long-term rate, the adjusted federal long-term tax-exempt rate. These rates are determined as prescribed by § 1274. 
 
The rates are published monthly for purposes of sections 42, 382, 412, 1288, 1274, 7520, 7872, and various other sections of the Internal Revenue Code.

Revenue Procedure 2008-66 (released October 16^th) provides the tax items adjusted for inflation for tax year 2009, such as itemized deductions, the tax rate tables, the earned income tax credit limits and many others.

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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