Daily Tax Update - July 25, 2006

SENATE REPUBLICAN LEADERS DROP EFFORTS TO INCLUDE TAX PROVISIONS IN PENSION BILL:
In the latest development from the pension reform conference, Senate Republican leaders have apparently decided not to include the tax cut extenders provisions in the pension reform bill. Instead, it appears that an effort will be made to move the expiring tax provisions along with a permanent reduction in the estate tax later this year. Senate Finance Committee Chairman Charles Grassley (R-IA) and ranking member Max Baucus (D-MT) are working to keep the extenders in the pension bill. The House hopes to bring up the conference report for a vote by the end of this week.

HOUSE EXPECTED TO PASS "BUSINESS ACTIVITY TAX SIMPLIFICATION ACT":
Later today, the House is expected to approve the "Business Activity Tax Simplification Act" (H.R. 1956). The bill would prohibit states from imposing income taxes or other business activity taxes on anyone involved in interstate commerce unless the company or individual had a physical presence in the state for more than 21 days in a taxable year.

TAX BILLS INTRODUCED JULY 25:

  • H.R. 5862 sponsored by Rep. John Campbell (R-CA) would allow individuals eligible for veterans health benefits to contribute to health savings accounts.
  • S. 3715 sponsored by Sen. Olympia Snowe (R-ME) would provide for the treatment of eligible combined defined benefit plans and qualified cash or deferred arrangements.
  • S. 3719 sponsored by Sen. Harry Reid (D-NV) would allow public school districts to receive no interest loans for the purchase of renewable energy systems.

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