Daily Tax Update - October 24, 2008

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

IRS SEEKING ADDRESS INFORMATION FOR TAXPAYERS’ UNDELIVERABLE REFUND CHECKS AND ECONOMIC STIMULUS PAYMENTS:  The IRS announced this week that it is seeking taxpayers who are missing more than 279,000 economic stimulus checks totaling about $163 million and more than 104,000 regular refund checks totaling about $103 million. The checks were returned by the Postal Service due to mailing address errors. The IRS said that the average undelivered stimulus check is $583 and the IRS must mail the economic stimulus checks by December 31, 2008. According to the IRS, the average returned refund check is $988.

• IRS Commissioner Doug Shulman said, “People across the country are missing tax refunds and stimulus checks. We want to get this money into the hands of taxpayers where it belongs. We are committed to making the process as easy as possible for taxpayers to update their addresses with the IRS and get their checks.”
• Additional information can be accessed here. 

MISCELLANEOUS GUIDANCE ISSUED THIS WEEK:
TD 9429 contains final regulations which modify the standards for treating certain payments in lieu of taxes or other tax equivalency payments (PILOTs) as generally applicable taxes for purposes of the private security or payment test under section 141 of the Internal Revenue Code (Code). This action is being taken in order to provide issuers of tax-exempt bonds with guidance on whether PILOTs are eligible to be treated as generally applicable taxes for this purpose. The regulations affect State and local governmental issuers of tax-exempt bonds.

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.

• Learn more about the members of the tax practice group.