Daily Tax Update - March 02, 2006

IRS ENCOURAGES BUSINESS TAXPAYERS TO SUBMIT ISSUES FOR RESOLUTION PROGRAM:
Today, the IRS encouraged business taxpayers and associations to seek resolution of "problematic" tax issues through the Industry Issue Resolution (IIR) Program. Submissions received by March 31, 2006 will be considered for IIR project selection and inclusion in the 2006-2007 Treasury and IRS Guidance Priority List.

  • According to the IRS, "The objective of the IIR program is to resolve business tax issues common to significant numbers of taxpayers through new guidance.  In past years, issues have been submitted by associations and others representing both small and large business taxpayers, resulting in tax guidance that has affected thousands of business taxpayers engaged in a variety of industries."
  • Additional information can be accessed here.  

TAX BILLS INTRODUCED MARCH 1:

  • H.R. 4834 sponsored by Rep. Phil English (R-PA) would allow a business tax credit for contributions to education scholarship organizations.
  • H.R. 4835 sponsored by Rep. Phil English (R-PA) would provide tax relief to promote investments in mine safety.
  • H.R. 4836 sponsored by Rep. Tom Feeney (R-FL) would create Catastrophe Savings Accounts.
  • H.R. 4837 sponsored by Rep. Zoe Lofgren (D-CA) would expand the tax incentives for higher education.
  • S. 2345 sponsored by Sen. Chuck Grassley (R-IA) would exempt passenger vehicles eligible for the alternative motor vehicle credit and the credit for qualified electric vehicles from the limitation on depreciation for luxury automobiles.
  • S. 2347 sponsored by Sen. Kent Conrad (D-ND) would extend and modify the tax credit for holders of qualified zone academy bonds.

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