Daily Tax Update - April 04, 2005

WAYS AND MEANS OVERSIGHT SUBCOMMITTEE SCHEDULES HEARING ON 2005 TAX RETURN FILING SEASON AND IRS FY 2006 BUDGET
On April 14, the House Ways and Means Subcommittee on Oversight will hold a hearing on the 2005 tax return filing season, current issues in tax administration, and the IRS budget for fiscal year 2006.

  • In announcing the hearing, Subcommittee Chairman Jim Ramstad (R-MN) said, "More than 130 million Americans will report their income and file a tax return this year.  These taxpayers deserve efficiency and fair and courteous treatment from the government they are helping to support." Ramstad added, "I look forward to hearing from IRS Commissioner Mark Everson and a number of tax experts about this year’s tax filing season.  The Oversight Subcommittee will seek to ensure that the IRS is using its resources efficiently, that it is doing everything possible to promote voluntary compliance, and that it is dealing fairly and honestly with taxpayers."

TAX BILLS INTRODUCED APRIL 5:

  • H.R. 1457 sponsored by Rep. Neil Abercrombie (D-HI) would restore the deduction for the travel expenses of a taxpayer's spouse who accompanies the taxpayer on business travel.
  • H.R. 1468 sponsored by Rep. Nancy Johnson (R-CT) would replace the recapture bond provisions of the low income housing tax credit program.
  • H.R. 1470 sponsored by Rep. Ron Paul (R-TX) would provide a tax credit to individuals who make contributions to finance the non-Federal share of projects of the Army Corps of Engineers.
  • H.R. 1473 sponsored by Rep. Bobby Rush (D-IL) would provide for a deferral of tax on gain from the sale of telecommunications businesses in specific circumstances or a tax credit and other incentives to promote diversity of ownership in telecommunications businesses. 
  • H.R. 1477 sponsored by Rep. Michael Turner (R-OH) would clarify the proper treatment of differential wage payments made to employees called to active duty in the uniformed services.
  • S. 702 sponsored by Sen. Max Baucus (D-MT) would repeal the occupational taxes relating to distilled spirits, wine, and beer.

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