Daily Tax Update - May 5, 2010

WAYS AND MEANS MEMBER SAYS FOREIGN TAX CREDIT COULD BE USED TO PAY FOR EXTENDERS: Today, House Ways and Means Committee member Christopher Van Hollen said that the Committee is considering using the taxation of carried interest and stricter enforcement of the misuse of the foreign tax credit as ways to pay for legislation to extend expiring tax provisions. Van Hollen said, “We are determined to get this done.” House and Senate leaders are discussing various approaches to help pay for the extenders package. Van Hollen said one possibility may be a curb on a “current creative use of the foreign tax credit” in which taxpayers claim the credit on income that has not yet been repatriated to the United States. Van Hollen also said that the committee is considering some kind of bank tax. Van Hollen said, “Putting some kind of fee or tax on big banks is part of the agenda. I hope we get it done.”

TAX BILL INTRODUCED MAY 4TH:
S.3306: A bill to amend the Internal Revenue Code of 1986 to require polluters to pay the full cost of oil spills, and for other purposes.
Sponsor: Sen Menendez, Robert [NJ] (introduced 5/4/2010)      Cosponsors (6)

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.

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