Daily Tax Update - June 29, 2005

ANOTHER HIGHWAY REAUTHORIZATION EXTENSION LOOMS:
Unless the House and Senate highway reauthorization bill conferees can reach an agreement today, it will be necessary to pass the eighth extension of the highway funding programs. The current extension expires tomorrow. It appears that a tentative deal reached last week agreeing to a $286.5 billion funding level fell apart last night, partly because of objections from some of the conferees that all projects would be earmarked in the authorizing bill, prohibiting lawmakers from earmarking projects through the appropriations process.

  • Yesterday, Senate Minority Leader Harry Reid (D-NV) said that he would block any efforts to convene a conference on the energy bill until after agreement is reached on the highway reauthorization bill. Reid wants to ensure adequate participation by Democrats in the energy bill conference discussions.

TAX BILLS INTRODUCED JUNE 28:

  • H.R. 3095 sponsored by Rep. Steve King (R-IA) would clarify that wages paid to unauthorized aliens may not be deducted from gross income.
  • H.R. 3098 sponsored by Rep. Paul Ryan (R-WI) would allow a deduction for premiums on mortgage insurance.
  • S. 1319 sponsored by Sen. Blanche Lincoln (D-AR) would improve the operation of employee stock ownership plans.
  • S. 1321 sponsored by Sen. Rick Santorum (R-PA) would repeal the excise tax on telephone and other communications.

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