Daily Tax Update - April 12, 2005

SENATE BUDGET COMMITTEE CHAIRMAN OPTIMISTIC ON BUDGET RECONCILIATION PROCESS:
Senate Budget Committee Chairman Judd Gregg (R-NH) said that although the House and Senate budget resolution conferees would not be able to meet the April 15th statutory deadline to complete the conference, he does expect negotiations to be completed by the end of April. The Senate fiscal year 2006 budget resolution contains approximately $130 billion in tax cuts protected under the reconciliation process versus approximately $45 billion protected under reconciliation instructions in the House version. Gregg suggested that an agreement on the tax cut amount would be "very doable."

WINNERS OF DVD PLAYERS AT TEI MIDYEAR CONFERENCE ANNOUNCED:
Steptoe & Johnson LLP is pleased to announce the winners of our drawings for the portable DVD players at the Tax Executives Institute 55th Midyear Conference. Mr. Lynn Stucky from Lincoln National Corporation won the drawing at our reception and Mr. Stephen McGregor from Southern Union Company won the drawing at our booth.

TAX BILLS INTRODUCED APRIL 11:

  • S. 750 sponsored by Sen. Jon Kyl (R-Z) would allow look-through treatment of payments between related foreign corporations.
  • S. 758 sponsored by Sen. George Allen (R-VA) would ensure that the federal excise tax on communication services does not apply to internet access service.

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