Daily Tax Update - April 27, 2005

BUDGET CONFEREES BEGIN NEGOTIATIONS:
Yesterday, the House and Senate formally named their budget conferees for the $2.6 trillion fiscal year 2006 budget resolution. Conferees have tentatively agreed to a tax cut reconciliation amount of $70 billion over five years which is expected to be used to extend several of the 2001 and 2003 expiring tax cuts. Reconciliation protection is used to protect Senate legislation from procedural hurdles that require 60 votes to overcome and can be used to cut spending or to move tax cuts. The Senate Finance and House Ways and Means Committees must determine specifically which tax cuts should move inside the reconciliation package. Floor action on the conference agreement is expected prior to the end of this week.

  • Senate Budget Committee Chairman Judd Gregg (R-NH) said yesterday that "nothing is agreed to until everything is agreed to." Gregg added, "[W]e need a budget by the end of the week."

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.