Daily Tax Update - June 30, 2005

HIGHWAY CONFEREES LIKELY TO PASS THREE WEEK EXTENSION TODAY:
The highway reauthorization bill conferees are expected to pass an additional three week extension of the funding for current highway and transit programs. A seventh extension of these programs expires today. The programs originally expired Oct. 1, 2003.

  • The extension is necessary to provide more time to find a compromise on several outstanding issues, including the level of authorized spending, earmarked projects and the level of funding for the states.

TAX BILLS INTRODUCED JUNE 29:

  • H.R. 3111 sponsored by Rep. Nancy Johnson (R-CT) would improve the operation of employee stock ownership plans.
  • H.R. 3122 sponsored by Rep. Ron Lewis (R-KY) would exempt the natural aging process in the determination of the production period for distilled spirits under section 263A of the Internal Revenue Code of 1986.
  • H.R. 3124 sponsored by Rep. Bill Pascrell, Jr. (D-NJ) would provide a shorter recovery period for the depreciation of certain restaurant buildings.
  • S. 1327 sponsored by Sen. Trent Lott (R-MS) would modify the active business definition under section 355.
  • S. 1329 sponsored by Sen. Evan Bayh (D-IN) would provide for a tax credit for offering employer-based health insurance coverage and provide for the establishment of health insurance purchasing pools.
  • S. 1330 sponsored by Sen. Hillary Rodham Clinton(D-NY) would provide incentives for employer-provided employee housing assistance.

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