Daily Tax Update - December 05, 2005

SENATE MAJORITY LEADER UNCERTAIN IF TAX CONFERENCE CAN BE COMPLETED THIS YEAR:
Late last week, Senate Majority Leader Bill Frist (R-TN) suggested that there might not be time left before Congress adjourns for the year to complete the conference on the tax reconciliations bills. Frist said, "I cannot predict on the tax side [of reconciliation]. We're going to very aggressively address that. We're going to have to get the Senate and the House together once the House passes their bill. It's unknown at this point exactly what's going to be in their bill." The House is expected to pass its tax reconciliation bill December 7 or 8. The Senate does not return in session until next week.

  • Today, the President spoke on the issues of the economy and tax relief. The President said, "The tax relief we set - that we delivered is set to expire in a couple of years. In other words, it's not permanent - it can go away. And unless Congress acts, you're going to get a big tax hike when that happens." The President added, "Some even say we should repeal the tax relief sooner. If that happens, a family of four making $60,000 today would see their federal income taxes eventually go up by more than 50 percent. I want you to think about that. As you work hard and balance your family budgets and try to save for the future, back in Washington some folks want to take more out of your paycheck by rolling back the tax cuts. When you hear people say that we don't need to make the tax relief permanent, what they're really saying is they're going to raise your taxes. One way to keep this economy growing is to have certainty in our tax code, and to help you keep - and to keep - let you keep more of your paycheck, and so the United States Congress needs to make this tax relief permanent."

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