Daily Tax Update - June 07, 2005

PRESIDENT ANNOUNCES TREASURY APPOINTMENT:
On June 3, President Bush nominated Kevin Fromer to be Assistant Secretary of the Treasury for Legislative Affairs. Fromer currently serves as House Speaker Dennis Hastert’s Assistant for Policy, Budget and Appropriations. Fromer’s nomination must be confirmed by the Senate.

TAX REFORM WITNESS LIST ANNOUNCED:
The witness list for the June 8th House Ways and Means Committee tax reform hearing has been released. Witnesses will include scholars from Columbia University, the University of Michigan, the University of California at Berkeley, and the Heritage Foundation. According to the Committee, "The focus of the hearing will be on attaining a broad overview of the principle economic objectives of tax reform with a focus on fairness, simplicity, and impacts on growth.  In particular, the hearing will explore: 1) ways to make compliance and understanding of the tax code simpler for American workers and businesses, 2) economic distortions and incentives imposed by the tax code, and 3) various measures of tax burdens."

HIGHWAY BILL CONFEREES TO HOLD FIRST OFFICIAL MEETING THURSDAY:
On June 9, the House and Senate highway reauthorization bill conferees will meet to try to reconcile the differences between the $284 billion House version and the $295 billion Senate version of the bill. In addition to authorizing additional spending, the Senate version also contains numerous revenue offsets not included in the House version of the bill. President Bush has threatened to veto any legislation that authorizes spending in excess of $284 billion. A White House spokesman said yesterday, "Our position hasn't changed, because the president's number is 284 [billion]." The conferees have until June 30, when the most recent Highway/Transportation spending extension lapses, to complete their work.

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