Daily Tax Update - May 24, 2010

TAX BILLS PENDING AS MEMORIAL DAY RECESS NEARS: Congress is scheduled to break for its Memorial Day recess this Friday until June 7^th. The extenders/jobs bill, “The American Jobs and Closing Tax Loopholes Act” (H.R. 4213), is scheduled to be considered by the House Rules Committee today and a House vote could be held as early as tomorrow.  

• Both House Speaker Nancy Pelosi and Finance Chairman Max Baucus predicted the bill would pass. However, few Republicans are expected to support the bill and several business groups have come out against some of the offsets in the bill.

SUPREME COURT DENIES CERT IN TEXTRON'S WORKPAPERS CASE: Today, the US Supreme Court denied a petition for certiorari to reconsider the First Circuit's ruling (Textron Inc. v. United States) that allowed the IRS access to a company's tax accrual workpapers.

• For additional information, contact Arthur L. Bailey - abailey@steptoe.com or J. Walker Johnson  - wjohnson@steptoe.com.

MISCELLANEOUS GUIDANCE RELEASED TODAY:
Revenue Procedure 2010-22 provides the 2011 inflation adjusted amounts for health savings accounts under § 223 of the Code.

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.

• Learn more about the members of the tax practice group.