Daily Tax Update - October 16, 2009

BAUCUS PREDICTS FULL DEMOCRATIC SUPPORT FOR SENATE HEALTH CARE BILL: Senate Finance Committee Chairman Max Baucus said yesterday that he thought every Senate Democrat would vote in support of health care reform when a bill comes to the Senate floor. Baucus said that lawmakers have a "moral obligation" to fix the health care system. Baucus said, “And that is why we are going to pass health care reform legislation this year, and it is why every Democrat will vote for it, and it is why there will be at least one Republican and maybe a couple more who also will vote for it.” Baucus added, “Every Democrat will vote for national health care reform.”

• The next meeting to continue merging the two bills passed by Senate committees will occur Tuesday. Regarding the content of the final bill, Senate Majority Leader Harry Reid said yesterday, “There are many competing views of how to best move health care reform. There are different views within my caucus. There are different views in the House. As far as coming forward with a bill, progress is being made...We must succeed with reform. It’s something the American people deserve.”
• Both Reid and House Speaker Nancy Pelosi have come out in support of including a public option plan in the final bill. Reid said, “I favor a public option. Everyone knows that.” While Pelosi added, “Our House bill will have a public option.”
• The House and Senate hope to debate their respective health care reform plans later this month or early next month.

MALOY SELECTED AS LMSB COMMISSIONER:IRS Commissioner Doug Shulman announced today the selection of Heather C. Maloy as commissioner of the Large and Mid-Size Business Division. As commissioner of the Large and Mid-Size Business Division (LMSB), Maloy will be responsible for services and enforcement for over 80,000 corporations and partnerships that file with the IRS. “I am extremely pleased that Heather has accepted this critical leadership assignment,” Shulman said. “She brings a wealth of skills, experience and insights to the position and a valuable public/private sector perspective that will help us both improve compliance and better serve this important taxpayer segment.”

MISCELLANEOUS GUIDANCE RELEASED TODAY:
Notice 2009-84 provides a limited administrative exception to the ability of the Internal Revenue Service to examine a Form 706 (United States Estate (and Generation-Skipping Transfer) Tax Return) in connection with certain protective claims for refund based on a deduction under section 2053 of the Internal Revenue Code (Code) and filed within the time prescribed in section 6511(a) of the Code.

TAX BILLS INTRODUCED OCTOBER 15^th:
H.R.3825: To amend the Internal Revenue Code of 1986 to provide a Federal income tax credit for certain home purchases.
Sponsor: Rep Bright, Bobby [AL-2] (introduced 10/15/2009) Cosponsors (None)

H.R.3834: To amend the Internal Revenue Code of 1986 to enhance incentives for renewable energy development in high job-loss zones in metropolitan and micropolitan statistical areas.
Sponsor: Rep Higgins, Brian [NY-27] (introduced 10/15/2009) Cosponsors (6)

H.R.3841: To amend the Internal Revenue Code of 1986 to repeal carryover basis for decedents dying in 2009, to increase the estate tax exemption to $5,000,000, and to reduce the maximum estate and gift tax rate to 45 percent.
Sponsor: Rep Schrader, Kurt [OR-5] (introduced 10/15/2009) Cosponsors (None)

H.R.3842: To amend the Internal Revenue Code of 1986 to extend the first-time homebuyer tax credit.
Sponsor: Rep Schrader, Kurt [OR-5] (introduced 10/15/2009) Cosponsors (1)

H.R.3844: To amend the Internal Revenue Code of 1986 to provide a special depreciation allowance and recovery period for noncommercial aircraft property.
Sponsor: Rep Tiahrt, Todd [KS-4] (introduced 10/15/2009) Cosponsors (None)

S.1792: A bill to amend the Internal Revenue Code of 1986 to modify the requirements for windows, doors, and skylights to be eligible for the credit for nonbusiness energy property.
Sponsor: Sen Rockefeller, John D., IV [WV] (introduced 10/15/2009) Cosponsors (1)

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