Daily Tax Update - July 24, 2006

LAWMAKERS HOPEFUL TO COMPLETE PENSION CONFERENCE THIS WEEK:
House and Senate pension bill conferees are hopeful to wrap up pension reform deliberations this week in time for the month-long August recess beginning Friday. Despite previous announcements that a tentative deal had been reached, there are several issues that must be resolved including which tax provisions to include in the bill. Once the conference report is finalized, both the House and Senate must pass it.

  • It is unclear whether several of the expiring tax provisions will be extended for one year or two years. Senate Republican leaders want to include a permanent reduction of the estate tax in the pension bill conference report, but several conferees are resisting that effort.

E-FILE AVAILABLE THROUGH OCTOBER 16th:
Today, the IRS reminded taxpayers who previously filed an extension of time to file tax returns that they can electronically file (e-file) their returns until October 16, 2006. According to the IRS, "The extension granted extra time for filing the tax return only, not for paying any taxes due. Taxpayers will owe interest on any past due tax and may be subject to a late payment penalty if payment was not made by the original due date of the return. This year, the original due date for most taxpayers was April 17."

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