Daily Tax Update - September 30, 2009

FINANCE BEGINS WORK ON TAX AMENDMENTS:  Today, the Senate Finance Committee began considering amendments to the financing section of the health care reform plan and is hopeful to complete its work on the bill by the end of this week. 

• Yesterday, the Committee defeated two amendments that would have added a public insurance option to the bill. Some members were troubled that a public insurance option amendment might be brought to the Senate floor. Ranking Finance member Charles Grassley said, “Will there be enough votes on the Senate floor to pass [a public insurance option]? I don’t know, but I’m scared that there might be.” Republican Finance member Sen. Mike Crapo added, “One of the interesting things has been that you have seen a lot of division on the other side—on the Democratic side—with regard to the issue itself. And so we’re starting to see those divisions show very clearly. I’m hopeful that there will be enough votes on both sides of the aisle to keep a government-run health care system from being adopted.”
• An amendment offered by Grassley was approved that would require that members of Congress and congressional staff access health insurance through the exchange that would be created by the health care reform legislation under consideration by the Finance Committee. Grassley said, “The more that Congress experiences the laws we pass, the better the laws are likely to be. My interest in having Members of Congress participate in the exchange is consistent with my long-held view that Congress should live under the same laws it passes for the rest of the country.”

IRS POSTS VOLUNTARY DISCLOSURE PROGRAM INFORMATION IN SIX LANGUAGES:  The IRS today announced that information is available on its website about the voluntary disclosure practice for those with undisclosed offshore accounts in six additional languages. The agency took this step in order to reach taxpayers whose primary language may not be English.

• Information related to the special October 15, 2009 deadline for undisclosed offshore accounts and a one-page overview of the voluntary disclosure practice are available in Chinese, French, Korean, Russian, Spanish, and Vietnamese on IRS.gov. 
• For additional information, contact Philip R. West - pwest@steptoe.com or Catherine W. Wilkinson - cwilkinson@steptoe.com 

MISCELLANEOUS GUIDANCE RELEASED TODAY:
Revenue Procedure 2009-47 provides rules for employees who are reimbursed for lodging, meals, and incidental expenses, or meals and incidental expenses only, while traveling away from home, to substantiate the expenses by per diem allowance in lieu of actual expenses. The revenue procedure also provides an optional method for employees and self-employed individuals who are not reimbursed to use in computing the deductible costs they pay or incur for business meal and incidental expenses, or for incidental expenses only if they pay or incur no meal expenses, while traveling away from home. Use of a method described in this revenue procedure is not mandatory, and a taxpayer may use actual allowable expenses if the taxpayer maintains adequate records or other sufficient evidence for proper substantiation.

TAX BILLS INTRODUCED SEPTEMBER 29^TH:
H.R.3659: Amend the Internal Revenue Code of 1986 to allow a credit against income tax for amounts paid for energy efficient property placed in service in commercial buildings pursuant to an approved energy efficiency plan.
Sponsor: Rep Wu, David [OR-1] (introduced 9/29/2009)      Cosponsors (None)

H.R.3660: To amend the Internal Revenue Code of 1986 to promote tax parity between the residential and business fuel cell tax credits.
Sponsor: Rep Wu, David [OR-1] (introduced 9/29/2009)      Cosponsors (1)

H.R.3666: To amend the Internal Revenue Code of 1986 to extend and increase the exclusion for benefits provided to volunteer firefighters and emergency medical responders.
Sponsor: Rep Baldwin, Tammy [WI-2] (introduced 9/29/2009)      Cosponsors (1)

H.R.3670: To amend the Internal Revenue Code of 1986 to expand the incentives for the rehabilitation of older buildings, including owner-occupied residences.
Sponsor: Rep Carnahan, Russ [MO-3] (introduced 9/29/2009)      Cosponsors (24)

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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