Daily Tax Update - April 29, 2005

HOUSE PASSES BUDGET RESOLTION AND SENATE EXPECTED TO FOLLOW SUIT TODAY:
Yesterday, the House passed the Fiscal Year 2006 budget resolution with Senate passage expected today. The conference report includes elements from both the House and Senate resolutions in providing for a total of $106 billion in tax relief. Of that amount, $70 billion will be protected under reconciliation.

  • House Budget Committee Chairman Jim Nussle R-IA) said, "Is this a perfect budget for every single member of the House and Senate? Of course not. If someone was waiting for the perfect budget, we would still be waiting and probably waiting for quite some time."

TAX BILLS INTRODUCED APRIL  28:

  • H.R. 1954 sponsored by Rep James McGovern would provide a tax credit for the transportation of food for charitable purposes.
  • H.R. 1960 sponsored by Rep. Rob Portman would expand expand pension coverage and savings opportunities and to provide other pension reforms.
  • H.R. 1961 sponsored by Rep Ben Cardin would expand pension coverage and savings opportunities and to provide other HR. pension reforms.
  • H.R. 1984 sponsored by Rep. Jim Gerlach would extend the low-income housing credit for certain buildings in high cost areas.
  • H.R. 1985 sponsored by Rep. Jim Gerlach would exclude from gross income amounts received as damages and attorneys fees and costs under Federal whistleblower protection laws and to allow income averaging for amounts received as lost income.
  • H.R. 1998 sponsored by Rep. Jim McCrery would provide for the disposition of unused benefits in health flexible spending arrangements.
  • H.R. 2001 sponsored by Rep. Dennis Moore would provide tax incentives to encourage small business health plans, and for other purposes.
  • H.R. 2002 sponsored by Rep. Dennis Moore would provide tax incentives to encourage small business health plans, and for other purposes.
  • H.R. 2007 sponsored by Rep. Collin Peterson would allow the $25,000 offset for individuals under the passive loss
  • H.R. 2008 sponsored by Rep Richard Pombo would allow a business credit for donations for vocational educational purposes. 
  • H.R. 2013 sponsored by Rep. David Reichert would provide an exemption from the air transportation tax for certain transportation by seaplanes.
  • H.R. 2034 sponsored by Rep. Terry Lee would provide an exclusion for gain from the sale of farmland to encourage the continued use of the property for farming, and for other purposes.
  • S. 962 sponsored by Sen. Charles Grassley would allow a credit to holders of qualified bonds issued to finance certain energy projects, and for other purposes.
  • S. 965 sponsored by Sen. Gordon Smith would reduce the recognition period for built-in gains for subchapter S corporations.

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.