Daily Tax Update - May 10, 2010

TREASURY, IRS SEEK RECOMMENDATIONS FOR 2010-2011 BUSINESS PLAN:  Today, the IRS issued Notice 2010-43, which seeks recommendations for guidance projects to be included on the 2010-2011 Guidance Priority List, commonly referred to as the business plan.  The IRS said that taxpayers may submit recommendations for guidance at any time during the year. However, recommendations submitted by June 30, 2010, will be reviewed for possible inclusion on the original 2010-2011 Guidance Priority List while recommendations received after June 30, 2010, will be reviewed for inclusion in the next periodic update.

·        The notice can be accessed via: http://www.steptoe.com/assets/attachments/N-10-43.pdf

FINANCE COMMITTEE TO HOLD THIRD HEARING ON BANK TAX ISSUE TOMORROW: On May 11, the Senate Finance Committee will hold the third hearing on a proposed fee on large financial institutions, commonly referred to as the bank tax. The Committee will continue its examination of the proposed bank tax and consider the effects of various options for structuring such a tax. Finance Chairman Max Baucus will question expert economists and industry representatives to consider who a potential tax should apply to and how it should be structured. 

• Meanwhile, negotiations continue on the tax extenders package and how to pay for them. A final bill is expected to be brought to the House floor in the next two weeks. Senate action on a small business tax bill could also occur this week.

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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