Daily Tax Update - February 8, 2010

SENATE DELAYS UNVEILING JOBS BILL:  Due to the heavy snowfall in the Washington area, Congress is not in session today. It is unclear when the Senate jobs bill will be released. A spokesman for Senate Majority Leader Harry Reid said, “We do still hope to consider jobs legislation” this week. The jobs bill could contain small-business tax breaks, Build America Bonds language, unemployment insurance and COBRA health insurance language, and an extension of the highway bill, as well as the tax extenders.

• Meanwhile, President Obama used his weekly radio address to promote small businesses. The President said that “America’s small businesses are key to rebuilding the economy on a new, stronger foundation and creating jobs.” The President called on Congress to pass a series of proposals that will help American small businesses. These proposals include using $30 billion in TARP funds to create a new Small Business Lending Fund to provide capital to community banks to increase lending to small businesses, offering a new tax credit for over one million small businesses that hire new workers or raise wages, and providing "targeted support for the most innovative small businesses with the potential to export new goods and products.” The President said, “To give these companies greater incentives to grow and create jobs, I’ve proposed a new tax credit for more than one million small businesses that hire new workers or raise wages, as well as the elimination of all capital gains taxes on small business investment.”

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.