Daily Tax Update - November 10, 2009

THE DAILY TAX UPDATE WILL BE PUBLISHED ON A PERIODIC BASIS UNTIL CONGRESS RETURNS FROM ITS VETERANS DAY RECESS ON NOVEMBER 16^TH

HEALTH CARE BILL FACES CHALLENGES IN SENATE AS REID AIMS TO BEGIN DEBATE NEXT WEEK: Senate Democrats have acknowledged the difficulty of getting a health care reform bill through the Senate process. Yesterday, Senate Majority Leader Harry Reid said, “We’re going to get on health care...before Thanksgiving, or at least give it our utmost to get on that bill.”

• Sen. Charles Schumer said, “I think every Democrat, from the most conservative to the most liberal, realizes that failure is not an option.” Schumer added, “Anyone can offer any amendment on any subject in the Senate whereas in the House, amendments are limited greatly, so therefore if you thought it was hard in the House it's going to be harder in the Senate.”
• Ranking Finance Committee member Sen. Chuck Grassley added that as "as long as there's at least a half a dozen Democrats that don't want it," the legislation is going nowhere.
• After House passage of its health care reform bill, President Obama said that the Senate “must follow suit.” The President said, “Thanks to the hard work of the House, we are just two steps away from achieving health insurance reform in America. Now the United States Senate must follow suit and pass its version of the legislation. I am absolutely confident it will, and I look forward to signing comprehensive health insurance reform into law by the end of the year.”

MISCELLANEOUS GUIDANCE ISSUED TODAY:
Announcement 2009-82 provides relief for sponsors of statutory hybrid plans that must amend the interest crediting rate in those plans. Plan sponsors may rely on this announcement pending publication of the anticipated additional guidance described in the announcement.

TAX BILLS INTRODUCED NOVEMBER 9th:
S.2754: A bill to amend the Internal Revenue Code of 1986 to encourage teachers to pursue teaching science, technology, engineering, and math subjects to elementary and secondary schools.
Sponsor: Sen Gillibrand, Kirsten E. [NY] (introduced 11/9/2009)      Cosponsors (None)

S.2755: A bill to amend the Internal Revenue Code of 1986 to provide an investment credit for equipment used to fabricate solar energy property, and for other purposes.
Sponsor: Sen Menendez, Robert [NJ] (introduced 11/9/2009)      Cosponsors (3)

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.