Daily Tax Update - April 20, 2005

COMMENTS TO REFORM TAX CODE DUE APRIL 29TH:
The President's Advisory Panel on Federal Tax Reform has set an April 29, 2005 deadline for submitting comments for reforming the tax code. The Advisory Panel will submit to the Secretary of the Treasury a report containing revenue neutral policy options for reforming the tax code by July 31, 2005.

  • Former Senator Connie Mack, Chairman of the tax reform commission, said, "At our seven public meetings that were held all over the country, we learned about the dismal condition of our tax code. We are now reviewing specific proposals for reform. We look forward to continuing to receive ideas and input from across the country. We will also hold public meetings in May to discuss options and alternatives that would make our tax system simpler, fairer, and more productive."
  • Former Senator John Breaux, Vice-Chairman of the commission said, "It is important that we hear from Americans about the kind of tax system they want. Now is the time to send in your ideas to improve our tax system."
  • Information on how to submit comments can be accessed here

TAX BILLS INTRODUCED APRIL 19:

  • H.R. 1678 sponsored by Rep. Marilyn Musgrave (R-CO) would extend the deduction for increased expensing for small business.
  • H.R. 1680 sponsored by Rep. Robert Andrews (D-NJ) would expand the incentives for the environmental cleanup of certain contaminated industrial sites designated as brownfields.
  • H.R. 1692 sponsored by Rep. Darlene Hooley (D-OR) would repeal the application of the sunset in the Economic Growth and Tax Relief Reconciliation Act of 2001 to tuition programs which are qualified under section 529 of the Internal Revenue Code of 1986. 
  • H.R. 1708 sponsored by Rep. Clay Shaw, Jr. (R-FL) would provide that the volume cap for private activity bonds shall not apply to bonds for facilities for the furnishing of water and sewage facilities.

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