Daily Tax Update - June 19, 2006

STEPTOE TO OPEN NEW OFFICE IN CENTURY CITY, CALIFORNIA:
Today, Steptoe & Johnson LLP announced that four lateral partners will join the firm July 1 and open a new Steptoe office in Century City.  Steptoe currently has an office in downtown Los Angeles with 19 lawyers who work primarily in the firm's top-tier toxic tort and ERISA practices.  The new partners joining the firm are Mark Neubauer, Rebecca Edelson, Katessa Charles Davis, and Meredith Moss, all formerly with Alschuler Grossman Stein and Kahan LLP in Santa Monica.  Steptoe’s new Century City office will be located in the Fox Plaza building at 2121 Avenue of the Stars, in the heart of one of the world's premiere business districts. This will be the seventh office for Steptoe, which currently has offices in downtown Los Angeles, Washington, D.C., New York City, Phoenix, London and Brussels.

  • Roger Warin, Steptoe’s Chairman said, "We are delighted to welcome four strong litigators who will further bolster our capabilities and reputation on the West Coast. Our new colleagues will enhance the firm’s longstanding reputation in national and international litigation and dispute resolution, as well as augment our employment and labor law capabilities throughout the United States."

FRIST ASKS HOUSE TO PASS ESTATE TAX COMPROMISE BILL:
On June 16, Senate Majority Leader Bill Frist (R-TN) said that he will ask the House to pass an estate tax compromise bill that contains enough support to receive 60 votes in the Senate. Tax legislation must originate in the House and Senate supporters have been trying to figure out a way to bring compromise legislation to the Senate floor. Frist said, "I will ask the Speaker and the House to send a bill to us that would be a permanent solution to the death tax. I will encourage them to attach appropriate provisions to make it attractive, and will hold a vote by July 4th." Although the House passed a permanent estate tax repeal bill last year, the Senate was not able to secure enough votes to bring a full repeal bill to the Senate floor earlier this month.

JEFFERSON WAYS AND MEANS COMMITTEE SEAT LIKELY TO REMAIN VACANT:
House Ways and Means Committee Ranking Member Charles Rangel (D-NY) said last week that Minority Leader Nancy Pelosi (D-CA) "has made a commitment that the seat [now held by Rep. William Jefferson (D-LA)] will not be filled" and that she would "leave it open for Jefferson to be exonerated and to return with his full seniority." House Democratic Caucus Chairman James Clyburn (D-SC) said if the seat was filled, "it will be with the understanding that it is temporary."

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