Daily Tax Update - December 6, 2005

HOUSE TO TAKE UP AMT RELIEF BILL THIS WEEK:
In addition to considering the $56 billion tax reconciliation bill later this week, the House will consider a one-year individual alternative minimum tax relief bill (H.R. 4096) Wednesday or Thursday. The AMT relief bill will be considered under "suspension" of the rules, which needs the support of two-thirds of the House to pass. The AMT patch provision was included in the Senate reconciliation bill, but was omitted from the House version. The Senate may also pass a separate AMT relief bill next week. Moving AMT relief outside of reconciliation might free up more funds for tax-cut extensions, including a two-year extension of the capital gains and dividend cut included in the House reconciliation bill.

ADMINISTRATION LIKELY TO DELAY TAX REFORM UNTIL AFTER 2006:
President Bush is likely to postpone efforts to overhaul the tax code until 2007 or 2008 according to recent statements by Administration officials. On December 2, National Economic Council Director Al Hubbard said, "The timing is unclear." Hubbard added, "That will be something that [President Bush] will continue to be concerned about, continue to be reviewing. But in terms of priorities next year, that's up -- I'm going to leave it up to him to share his priorities with the American people."

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.