Daily Tax Update - February 02, 2006

SENATE CONTINUES PROCEDURAL STEPS TO BEGIN TAX RECONCILIATION CONFERENCE:
Today, the Senate continues to work through several procedural matters that are required before a formal conference can begin to resolve the differences in the House and Senate tax reconciliation bills. The Senate must first obtain 60 votes to overcome a point of order against the capital gains and dividend provision in the House bill because it is not offset as required under Senate rules. The Senate must then pass the House bill and amend it with the Senate-passed language. Senate passage is expected later today. The Senate will then move to go to conference and name conferees, after which senators will be given the chance to offer motions to instruct conferees.

  • Senate Finance Committee Chairman Charles Grassley (R-IA) and House Ways and Means Committee Chairman Bill Thomas (R-CA) said that the conference would proceed quickly once the process has begun. Thomas said, "I don't anticipate the tax reconciliation [conference] being either an especially difficult one or a long one."

REP. BOEHNER WINS HOUSE MAJORITY LEADER POST:
Today, House Education and the Workforce Committee Chairman John Boehner (R-OH) defeated Majority Whip Roy Blunt (R-MO) in the race for majority leader by a 122-109 vote. Boehner succeeds Rep. Tom DeLay (R-TX).

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
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