Daily Tax Update - July 27, 2005

HIGHWAY CONFEREES EXPECTED TO FILE REPORT TODAY:
House and Senate highway reauthorization bill conferees are close to a final agreement on a $286.5 billion six-year transportation reauthorization bill. An agreement has been reached regarding how to divide transit funds among the states. Even if the conference report is filed today, lawmakers will still need to file an 11th extension of the highway spending programs in order for the full House and Senate to pass the conference report and for President Bush to sign the bill into law.

TAX BILLS INTRODUCED JULY 26:

  • H.R. 3428 sponsored by Rep. Melissa Hart (R-PA) would repeal the medicine and drugs limitation on the deduction for medical care.
  • H.R. 3441 sponsored by Rep. Scott Garrett (R-NJ) would apply the child tax credit with respect to a taxable year to a child born within 9 months after the close of the taxable year and to a child who is stillborn or dies in utero during the taxable year.
  • H.R. 3444 sponsored by Rep. Ron Paul (R-TX) would provide credits against income tax for qualified stem cell research, the storage of qualified stem cells, and the donation of umbilical cord blood.

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