Daily Tax Update - March 15, 2005

SENATE DELIBERATES FY 1006 BUDGET RESOLUTION:
Today, the Senate continued debating its Fiscal Year 2006 budget resolution in anticipation of a final vote on March 18 before the two-week Congressional spring recess. The Senate budget resolution provides $70 billion in reconciliation instructions and it is expected that amount will be used to extend many of the 2001 and 2003 expiring tax cuts.

  • Sen. Russell Feingold (D-WI) is expected to introduce an amendment establishing a budget "pay-as-you-go" requirement that any new spending increases or tax cuts be offset by equal spending cuts or tax increases.   The pay/go amendment would require offsets for the $70 billion in tax cuts over five years.

TAX BILLS INTRODUCED MARCH 14:

  • H.R. 1270 sponsored by Rep. William Thomas (R-CA) would extend the Leaking Underground Storage Tank Trust Fund financing rate.
  • H.R. 1272 sponsored by Rep. Jerry Weller (R-IL) would modify the work opportunity credit and the welfare-to-work credit.
  • H.R. 1275 sponsored by Rep. Tammy Baldwin (D-WI) would increase the amount which may be excluded from the gross income of an employee for dependent care assistance with respect to dependent care services provided during a taxable year and adjust such amount each year by the rate of inflation for such year.

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