Daily Tax Update - June 26, 2006

IRS HEADQUARTERS CLOSED TODAY DUE TO FLOODING:
The headquarters building of the IRS was closed today due to extensive water accumulation in the basement from heavy rains in the Washington area over the past several days. The building houses about 2,400 employees. According to an IRS spokesman, the building is expected to reopen on June 27. The Department of Justice and National Archives buildings were also closed today because of flooding problems.

FRIST EXPECTED TO MAKE DECISION ON ESTATE TAX BILL SOON:
Senate Majority Leader Bill Frist (R-TN) is still trying to determine whether to bring an estate tax bill to the Senate floor this week. The Majority Leader said he would not bring a bill to the Senate floor unless there are 60 votes to pass it. In order to obtain the 60 required votes for cloture, at least three Democrats who opposed cloture and all Republicans who previously supported cloture will need to support cloture this time.

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