Daily Tax Update - April 26, 2006

2006 FILING SEASON SETS RECORD:
Today, the IRS announced that the 2006 filing season set a series of records including 70 million tax returns being filed electronically and a record number of visitors to the IRS website.

  • IRS Commissioner Mark Everson said, "We saw a surge of e-filing at the end of the tax season, particularly with people using software on home computers. Compared to recent years, we had much more e-filing in the weeks leading up to the deadline, signaling that more balance due filers are embracing this service. Overall, we received more tax returns electronically this year than the number of paper returns we processed for the entire United States in 1966. E-file is changing the way the nation does taxes." Everson added, "E-filing complemented the hard work of IRS workers, tax professionals and tax volunteers during the tax season. I’d like to thank these people for their hard work and dedication."

TAX BILLS INTRODUCED APRIL 25

  • H.R. 5175 sponsored by Rep. Lloyd Doggett (D-TX) would allow the Secretary of the Treasury to disclose taxpayer identity information through mass communications to notify persons entitled to tax refunds.
  • H.R. 5176 sponsored by Rep. Rahm Emanuel (D-IL) would make the Federal income tax system simpler, fairer, and more fiscally responsible.
  • H.R. 5177 sponsored by Rep. Phil English (R-PA) would allow bonds guaranteed by the Federal home loan banks to be treated as tax exempt bonds.
  • H.R. 5186 sponsored by Rep. Eleanor Holmes Norton (D-DC) would replace the expired tax benefits for the DC Zone.

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