Daily Tax Update - September 18, 2009

FINANCE COMMITTEE TO BEGIN MARKING UP BAUCUS HEALTH CARE PLAN TUESDAY: On September 22, the Senate Finance Committee will hold a mark up on Chairman Baucus’ health care reform proposal. Baucus said, “It's my goal to finish the markup by the end of the week.” Committee members have until the end of today to submit amendments.

• Ranking Finance member Charles Grassley said that all Finance Republicans would be “working together as a team on amendments, and we have not decided on any specific amendments, just work as a team.”
• Several Senate Democrats and Republicans said that the bill needs additional work. Democratic Finance Member Maria Cantwell said that the Baucus plan “needs more than just a few tweaks.” Meanwhile, Senate Majority Whip Dick Durbin said, “Put it in perspective. For months, the debate over health care in the Senate consisted of six people sitting in a room. Now it's been expanded. So we have a lot of people who need to become informed, express themselves, ask for changes if they can.”
• Several Republican Senators, including Sens. Olympia Snowe, Ben Nelson, Joe Lieberman and Claire McCaskill, said that Baucus’ plan “has the potential to gain broad bipartisan support.” Their statement continued, “Each of us has an obligation to put aside partisan views and to consider how health care reform addresses the needs and challenges faced by individual citizens and our economy as a whole...While we each have outstanding concerns we wish to see addressed, Senator Baucus has taken an important and critical step forward with this legislation. We will continue to work together in the full Senate on bipartisan health care reform that reduces costs, improves care, and expands access.”
• Meanwhile, House Ways and Means Chairman Charles Rangel said that House members are “very anxious to see where Sen. Baucus is going.” Rangel added, “We want to see what support, or lack of support, he gets on the Senate side before we really get tied into changing anything, and I mean changing anything, on very little evidence as to the public support his idea has. We can't work up our troops to believe that they're for or against anything if we really don't know what type of support or lack of support they have on the Senate side. And that's not mumbling, that just makes sense.”

MISCELLANEOUS GUIDANCE RELEASED TODAY:
Revenue Ruling 2009-33 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.

TAX BILLS INTRODUCED SEPTEMBER 17th:
H.R.3590: To amend the Internal Revenue Code of 1986 to modify the first-time homebuyers credit in the case of members of the Armed Forces and certain other Federal employees, and for other purposes.
Sponsor: Rep Rangel, Charles B. [NY-15] (introduced 9/17/2009)      Cosponsors (29)

H.R.3592: To amend the Internal Revenue Code of 1986 to allow a tax credit for producing oil from recycled waste.
Sponsor: Rep Pascrell, Bill, Jr. [NJ-8] (introduced 9/17/2009)      Cosponsors (3)

H.R.3595: To amend the Internal Revenue Code of 1986 to reduce the Federal tax on fuels by the amount of any increase in the rate of tax on such fuel by the States.
Sponsor: Rep Garrett, Scott [NJ-5] (introduced 9/17/2009)      Cosponsors (None)

H.R.3602: To allow certain newspapers to be treated as described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of such Code.
Sponsor: Rep Maloney, Carolyn B. [NY-14] (introduced 9/17/2009)      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
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