Daily Tax Update - July 19, 2006

PENSION CONFEREES CLOSE TO AGREEMENT:
Senate Health, Education, Labor and Pensions Committee Chairman Sen. Michael Enzi (R-WY) said that he is hopeful to have an agreement on a draft conference report on pension reform legislation resolved later today. Enzi said, "We've been holding discussions for a long time. So I took the chairman's prerogative of putting together a draft mark last week and circulated it to a number of people." The bill is expected to include provisions giving relief to struggling airlines and making it easier for investment firms to provide advice to their 401(k) clients.

  • Today, House Speaker Dennis Hastert (R-IL) said that he wants a House vote on the final bill by the start of the August recess.
  • Several tax provisions are expected to be attached to the pension reform conference report extending several tax relief provisions that expired at the end of 2005, including a deduction for state and local sales taxes, the research credit, and other business extenders. Several charitable giving incentives and charitable reforms could also be included.

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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