Daily Tax Update - April 25, 2006

SENATE FINANCE COMMITTEE CHAIRMAN HOPES TAX RECONCILIATION NEGOTIATIONS CAN CONCLUDE QUICKLY:
Yesterday, Senate Finance Committee Chairman Charles Grassley (R-IA) said that he hopes that the tax reconciliation bill can be resolved "sooner rather than later." Grassley also said that the conferees had reached a consensus prior to the spring recess that the final bill would include a two-year extension of the reduced tax rates on capital gains and dividends as well as partial alternative minimum tax relief. 

  • On the issue of which revenue raisers may be included in the bill, Grassley said, "There is a need for revenue raisers from my standpoint, but I'm not doing it just for revenue raisers. A lot of them are because there's a lot of tax policy that needs to be changed to stop abuse of the tax code."

TAX BILL INTRODUCED APRIL 24

  • S.2635 sponsored by Sen. Ron Wyden (D-OR) would extend the transportation fringe benefit to bicycle commuters.

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