Daily Tax Update - November 30, 2009

CONGRESS RETURNS AFTER THANKSGIVING RECESS:  The Senate returns to work today followed by the House tomorrow. The Senate is expected to hold a lengthy debate and consider numerous amendments on its health care reform bill prior to its December 18th target adjournment date.

• The House is expected to vote on an estate tax bill (H.R. 4154) this week. The legislation would allow a $3.5 million estate tax exclusion and a reduction in the maximum estate and gift tax rate to 45% after 2009.

PRESIDENT’S TAX REFORM REPORT RELEASE DELAYED: On November 27th, the White House announced that the President's Economic Recovery Advisory Board (PERAB) will not release its report on December 4th as originally scheduled. According to the Commission's Chairman Paul Volker, "[W]e have received more than 500 submissions of serious tax reform ideas from the public both in person and on our website and we had to cut them off to meet the original deadline. I want us to review as many suggestions as possible and to have sufficient time to fully consider the hundreds of suggestions that have come in already. I have asked the Administration to extend our deadline and to reopen the website for submissions so that we can hear the widest possible range of ideas." Volker added, “We still have the same specific mandate: to discuss the pros and cons of a spectrum of reform ideas relating to tax simplification, enforcement of existing tax laws and reform the corporate tax system without considering policies that would raise taxes on families making less than $250,000. The PERAB is not tasked with providing its own policy recommendations for the Administration and the final report will be an almanac of options from a broad range of viewpoints." Volker said that comments could still be submitted and additional public hearings will be held.

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.

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