Daily Tax Update - September 9, 2009

BAUCUS PLANS TO MARK UP HEALTH BILL WEEK OF SEPTEMBER 21^st:  Senate Finance Committee Chairman Max Baucus said that he plans to begin marking up a health care reform bill the week of September 21^st, with or without a bipartisan agreement. Baucus said, “I very much hope and expect Republicans to be on board. I don't know how many, but if there are not any, I'm going to move forward in any event.” One of the negotiators, Senator Kent Conrad, said, “Everybody kind of needs to take a deep breath. Let's get this right. Let's not just get stampeded and rushed to do things that we're not ready to do right.”

• Yesterday, Baucus set a 10:00 a.m. deadline today for the negotiators to offer “specific proposals” on his $900 billion health care “framework” and said that “time is running out” to reach a deal. Baucus wanted to have a tentative agreement before President Obama’s health care speech tonight. Baucus said late yesterday, “The rubber is starting to meet the road...We're not going to dawdle. Time is running out very quickly. I suspect I'll be making some decisions very quickly.” Baucus added, “Over the next week or so, the Finance Committee will move forward with health care reform...We very much want a bipartisan agreement. To get a proposal out of the Finance Committee, it cannot have a public option.” Today, Baucus added, “I could be wrong, but it's my belief that the public option cannot pass.” 
• Meanwhile, House Majority Leader Steny Hoyer said that the House does not have a timetable for bringing a bill to the House floor. Hoyer said, “There's no ‘the bill’ at this point in time.” Hoyer also said that Democrats spent the August recess getting public feedback and will be “coming together now and putting together the bill that we'll bring to the floor.”

MISCELLANEOUS GUIDANCE RELEASED TODAY:
Revenue Procedure 2009-43 provides that the Service will automatically approve a revocation request if certain requirements are met. IRC 204 of WRERA permits a plan to revoke the election to treat the plan as being funded at the prior year's certified level with the approval of the Service.

Revenue Procedure 2009-42 which describes the conditions under which a regulated investment company (RIC) that invests in a public-private investment partnership (PPIP) is treated for purposes of the asset diversification test of section 851(b)(3) as if it directly invested in the assets held by the PPIP.

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.

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