Daily Tax Update - July 18, 2006

IRS ISSUES SPRING 2006 STATISTICS OF INCOME BULLETIN:
Today, the IRS released the Spring 2006 issue of the Statistics of Income Bulletin. The Spring Bulletin includes information about high-income individual income tax returns for Tax Year 2003, S corporation returns for Tax Year 2003, split-interest trusts for Filing Year 2004, controlled foreign corporations (CFCs) for Tax Year 2002, and the accumulation and distribution of Individual Retirement Arrangements (IRAs) for Tax Years 2001-2002.

  • The document can be accessed here.

PENSION CONFERENCE CONTINUES:
Senate Health, Education, Labor and Pensions Committee Chairman Michael Enzi (R-WY) has offered compromise language to the House pension reform conferees in hope of resolving the months-long stalemate in the conference. Enzi said, "The bottom line is that we all agree on 90 percent and I'm expecting to finish up the last 10 percent in the next couple of days so that we can have the bill to the President this month." Enzi added, "We are preparing a Senate offer that will serve as my chairman's mark to resolve the few remaining issues and close this conference as quickly as possible." Among the unresolved conference committee items are whether to give extra pension assistance to struggling airline carriers and whether to allow employers to use the same firm to provide investment advice to their employees as they do to manage workers' retirement assets.

  • A spokesman for Senate Majority Leader Bill Frist (R-TN) said that the Majority Leader wants a pension conference report finalized before the August recess begins.

TAX BILL INTRODUCED JULY 17:

  • H.R. 5809 sponsored by Rep. Melissa Hart (R-PA) would increase and extend the energy efficient commercial buildings deduction.

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