Daily Tax Update - July 27, 2006

PENSION CONFERENCE AT IMPASSE OVER TAX EXTENDERS:
Disagreement remains among the pension reform conferees over whether to remove a package of tax extenders from the bill and move them separately along with an estate tax relief provision. Senate Finance Committee Chairman Charles Grassley (R-IA) and ranking member Max Baucus (D-MT) are working to keep the tax extenders in the pension reform conference bill while House Majority Leader John Boehner (R-OH) wants to advance the tax extenders separately along with an estate tax measure.

  • Today, House Speaker Dennis Hastert (R-IL) said that it is uncertain if the extenders will remain in the pension bill. Hastert added, "Right now, it's not in."
  • Today, Boehner remained optimistic that the pension bill and an extenders/estate bill could be brought to the House for a vote before the House recesses. Boehner said, "They are not ready now, but we remain hopeful they will be ready soon."

TAX BILLS INTRODUCED JULY 26:

  • H.R. 5889 sponsored by Rep. Stephanie Tubbs Jones (D-OH) would exempt from the harbor maintenance tax certain commercial cargo loaded or unloaded at United States ports in the Great Lakes Saint Lawrence Seaway System.
  • H.R. 5892 sponsored by Rep. Robert Aderholt (R-AL) would provide special rules for the exchange or installment sale of certain agricultural property.
  • H.R. 5904 sponsored by Rep. Jim Matheson (D-UT) would allow public school districts to receive no interest loans for the purchase of renewable energy systems.
  • H.R. 5905 sponsored by Rep. Martin Meehan (D-MA) would reform the system of public financing for Presidential elections.
  • S. 3738 sponsored by Sen. Max Baucus (D-MT) would provide an additional standard deduction for real property taxes for nonitemizers.
  • S. 3740 sponsored by Sen. Russell Feingold (D-WI) would reform the system of public financing for Presidential elections.
  • S. 3742 sponsored by Sen. Trent Lott (R-MS) would provide incentives to encourage investment in the expansion of freight rail infrastructure capacity and enhance modal tax equity.

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