Daily Tax Update - March 17,2006

THE DAILY TAX UPDATE WILL BE PUBLISHED ON A PERIODIC BASIS UNTIL CONGRESS RETURNS FROM ITS RECESS ON MARCH 27th.

HOUSE MAJORITY LEADER OUTLINES UPCOMING LEGISLATIVE AGENDA:
House Majority Leader John Boehner (R-OH) said yesterday that the House will spend much of the remaining session focusing on tax cuts, health care, lobbying and ethics reform, and national security. House Speaker Dennis Hastert (R-IL) added that the pension reform conference and tax reconciliation conference would also be included on the upcoming Congressional agenda.

  • On the issue of taxes, Boehner said, "I want tax cuts to be permanent. This idea of having some expiration date leaves uncertainty in the marketplace and when there's uncertainty, people aren't willing to invest without some idea of where the tax is going." Boehner added, "I think it's important that we extend these tax cuts, at a minimum, so that people have a long-term view of where we're going with taxes."

TAX BILLS INTRODUCED MARCH 16:

  • H.R. 4985 sponsored by Rep. Kevin Brady (R-TX) would clarify the employment tax treatment and reporting of wages paid by professional employer organizations.
  • H.R. 5010 sponsored by Rep. Heather Wilson (R-NM) would extend the credit for electricity produced from certain renewable resources.
  • S. 2431 sponsored by Sen. Max Baucus (D-MT) would encourage all Americans to save for retirement by increasing their access to pension plans and other retirement savings vehicles.
  • S. 2451 sponsored by Sen. Mary Landrieu (D-LA) would expand certain tax benefits related to Hurricane Katrina and Hurricane Rita.

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