Daily Tax Update - February 06, 2006

TREASURY RELEASES FISCAL YEAR 2007 BLUE BOOK:
Today, the Treasury Department released its General Explanations of the Administration's Fiscal Year 2007 Revenue Proposals, otherwise known as the Blue Book.  In addition to permanent extension of the President's tax relief enacted in 2001 and 2003, the President's FY 2007 Budget includes several new initiatives, including:

  • Increased expensing for small businesses;
  • A set of proposals to improve access to health care and expand Health Savings Accounts (HSAs);
  • Proposals to increase compliance, simplify the tax laws and reduce taxpayer burden; and
  • A proposal to create a new Dynamic Analysis Division within the Treasury Department's Office of Tax.
  • Today, IRS Commissioner Mark Everson said, "The Administration’s 2007 budget proposal shows a strong commitment to the work we’re doing at the IRS. The overall $10.7 billion operating budget is a responsible request in light of the current budget environment. The proposed budget strikes a good balance between maintaining our commitment to taxpayer service and continuing to reinvigorate enforcement efforts. The proposal continues support for our priority technology modernization projects. Everson added, "An important part of the request involves the new legislative proposals to address the tax gap. We know from our research that compliance is greatest where there is third-party reporting. The Administration’s proposal would give us new tools to improve tax compliance.
  • The Blue Book can be accessed here.         
  • The President’s FY 2007 budget can be accessed here.    

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