Daily Tax Update - June 29, 2006

IRS HEADQUARTERS BUILDING LIKELY TO REMAIN CLOSED THROUGH END OF JULY:
Today, the IRS announced that its headquarters building is likely to remain closed for at least 30 days due to flooding and electrical outages. The IRS stated that the building sustained extensive damage to the infrastructure, office furniture and supplies. The subbasement, which holds all of the building's electrical and maintenance systems, was submerged in more than 20 feet of water while the basement was flooded with five feet of water. The IRS said that its 2400 employees will be located to other IRS facilities in the Washington area or temporary space and that the closure will not impact the IRS's service and enforcement operations during this time. The IRS estimated that cleanup and renovation costs could run into the tens of millions of dollars.

  • IRS Commissioner Mark Everson said, "The building will be closed for an extended period of time, and we will reoccupy it only when it is safe to do so. We're working closely with GSA to make all necessary repairs."
  • Additional information can be accessed here.

SENATE CONFIRMS PAULSON AS NEW TREASURY SECRETARY:
Yesterday, the Senate voted to confirm Henry Paulson, Jr. as the 74th Secretary of the Treasury.

TAX BILLS INTRODUCED JULY 28:

  • H.R. 5693 sponsored by Rep. Robin Hayes (R-NC) would exclude from gross income mileage reimbursements to volunteer emergency medical responders and volunteer firefighters and increase the mileage allowance for charitable contributions for the benefit of volunteer fire departments.
  • H.R. 5701 sponsored by Rep. Joe Knollenberg (R-MI) would increase the annual contribution limit to Coverdell education savings accounts.
  • H.R. 5703 sponsored by Rep. Martin Meehan (D-MA) would provide a credit for the purchase of qualified flexible fuel motor vehicles.

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