Daily Tax Update - July 20, 2005

HIGHWAY CONFEREES APPROVE TWO-DAY EXTENSION:
Yesterday, House and Senate highway reauthorization conferees approved a two-day extension in order to continue negotiations, but efforts to bridge the differences between the conferees regarding the formula for distributing federal highway aid to states remains stalled. Despite their inability to resolve differences thus far, the conferees are still hopeful they can complete their work this week.

BAUCUS: VOTE ON ESTATE TAX BILL BEFORE AUGUST RECESS WOULD NOT BE "CONSTRUCTIVE":
Yesterday, ranking Senate Finance Committee member Max Baucus (D-MT) said that a vote on an estate tax bill would not be "constructive" before Congress adjourns at the end of July for their month-long August recess. Baucus said, "I don't think that would be constructive. I don't think we're ready yet." Baucus added, "We've got some work ahead of us."

  • Sen. Jon Kyl (R-AZ) supports a compromise estate tax bill that would cut the rate to 15 percent and include an exemption of over $8 million. Under this compromise, the estate tax would be fully repealed for just one year in 2010 before returning in 2011. Baucus said that although Congress faces a deadline to repeal the estate tax, "time is not of the essence." Baucus added, "The cliff doesn't occur until 2010. That's a few years from now."

TAX BILL INTRODUCED JULY 19:

  • H.R. 3338 sponsored by Rep. Wally Herger (R-CA) would extend the credit period to 10 years for certain facilities producing electricity from certain renewable resources.

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

Learn more about the members of the tax practice group.