Daily Tax Update - November 6, 2009

HOYER: HEALTH CARE VOTE COULD SLIP TO SUNDAY OR LATER – NO REPUBLICAN SUPPORT EXPECTED: Today, House Majority Leader Steny Hoyer said that the House vote on health care legislation could occur past their Saturday target date. Hoyer said that the vote might not take place until Sunday or even Monday or Tuesday if Republicans use delaying tactics, not from a lack of support. Hoyer said, “I have not said the bill might get pushed back. But clearly, things happen. My expectation is we’ll complete this tomorrow night.” Hoyer added, “We’re very close” to the 218 votes needed for passage.

• Meanwhile, House Minority Whip Eric Cantor said that he didn’t expect any Republicans to vote in support of the bill. Cantor said, “I don’t expect to lose any votes out of Republicans in the House.” Cantor said that Pelosi would “get no help from us in passing this gargantuan, trillion dollar overhaul.”
• House Minority Leader John Boehner added, “The choices couldn't be clearer.  Speaker Pelosi's plan is going to raise costs while ours lowers cost. Speaker Pelosi's plan raises taxes while ours does not. Her plan cuts Medicare benefits for seniors; ours does not.”

PRESIDENT SIGNS BILL EXPANDING HOME BUYER CREDIT, NOL CARRYBACK: Today, President Obama  signed into law a bill (H.R. 3548) extending and expanding home buyer tax credits and net operating loss carryback rules into 2010. The bill is offset with an extension through June 30, 2011, of the 0.2 percent FUTA surtax, increased failure-to-file penalties for S corporations and partnerships, and a delay of the effective date for the worldwide interest allocation benefit until tax years after 2017.

MISCELLANEOUS GUIDANCE RELEASED TODAY:
Notice 2009-88 provides guidance as to the corporate bond weighted average interest rate and the permissible range of interest rates specified under § 412(b)(5)(B)(ii)(II) of the Internal Revenue Code.  It also provides guidance on the corporate bond monthly yield curve (and the corresponding spot segment rates), the 24-month average segment rates, and the funding transitional segment rates under § 430(h)(2).  In addition, this notice provides guidance as to the interest rate on 30-year Treasury securities under § 417(e)(3)(A)(ii)(II) as in effect for plan years beginning before 2008, and the minimum present value segment rates under § 417(e)(3)(D) as in effect for plan years beginning after 2007.  

TAX BILLS INTRODUCED NOVEMBER 5th:
H.R.4032: To amend the Internal Revenue Code of 1986 to extend the first-time homebuyer tax credit and to eliminate the first-time homebuyer requirement and increase the adjusted gross income limitations with respect to such credit, and for other purposes.
Sponsor: Rep Brady, Kevin [TX-8] (introduced 11/5/2009)      Cosponsors (None)

H.R.4035: To amend the Internal Revenue Code of 1986 to allow the estate of a decedent to use the capital loss carryover of the decedent as a deduction against estate tax.
Sponsor: Rep Marchant, Kenny [TX-24] (introduced 11/5/2009)      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
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.