Daily Tax Update - May 7, 2010

DEMOCRATIC LEADERS HOPEFUL TO WRAP UP EXTENDERS PACKAGE SOON: House and Senate leaders are continuing negotiations over numerous expiring tax provisions and the offsets to pay for them, and are hopeful to complete a final bill in the next two weeks.

• Meanwhile, Senate Finance Committee Chairman Max Baucus and other Finance members are working to reach an agreement on a small business tax bill. The bill could also contain an extension of middle-class tax cuts and an estate tax fix. The Finance Committee could mark up the small business tax bill next week.
• Yesterday, House Democratic Congressional Campaign Committee Chairman Chris Van Hollen said that the House would act on the middle-class income tax cuts before the November elections. Van Hollen said, “We will make sure that we deal with the tax provisions for the middle class.”

TAX BILLS INTRODUCED MAY 6TH:
H.R.5234: To amend the Public Health Service Act, the Employee Retirement Income Security Act, the Internal Revenue Code of 1986, and title XVIII of the Social Security Act to ensure transparency and proper operation of pharmacy benefit managers.
Sponsor: Rep Weiner, Anthony D. [NY-9] (introduced 5/6/2010)      Cosponsors (1)

H.R.5239: To amend the Internal Revenue Code of 1986 to provide an additional 25 percent allowance for the deduction of qualified residence interest with respect to a principal residence, and to waive recapture of the first-time homebuyer tax credit with respect to residences purchased during 2008.
Sponsor: Rep Boswell, Leonard L. [IA-3] (introduced 5/6/2010)      Cosponsors (2)

H.R.5244: To amend the Internal Revenue Code of 1986 to exclude from gross income amounts received for services by a student at a work-college.
Sponsor: Rep Davis, Danny K. [IL-7] (introduced 5/6/2010)      Cosponsors (3)

H.R.5251: To amend the Internal Revenue Code of 1986 to allow a credit against tax for birth mothers whose children are adopted.
Sponsor: Rep Schmidt, Jean [OH-2] (introduced 5/6/2010)      Cosponsors (3)

H.R.5252: To amend the American Recovery and Reinvestment Act of 2009 and the Internal Revenue Code of 1986 to provide incentives for the development of solar energy.
Sponsor: Rep Spratt, John M., Jr. [SC-5] (introduced 5/6/2010)      Cosponsors (None)

S.3324: A bill to amend the Internal Revenue Code of 1986 to extend the qualifying advanced energy project credit.
Sponsor: Sen Brown, Sherrod [OH] (introduced 5/6/2010)      Cosponsors (4)

S.3326: A bill to provide grants to States for low-income housing projects in lieu of low-income housing credits, and to amend the Internal Revenue Code of 1986 to allow a 5-year carryback of the low-income housing credit, and for other purposes.
Sponsor: Sen Cantwell, Maria [WA] (introduced 5/6/2010)      Cosponsors (2)

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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