Daily Tax Update - February 01, 2005

President's 2006 Budget Requests More For IRS Enforcement Activities
President Bush's Fiscal Year 2006 budget will request an additional $500 million for IRS enforcement activities, which represents a 7.8% increase in funding over FY 2005. The President’s budget will be released on February 7.

  • Treasury Secretary John Snow said, "Americans who play by the rules and pay their taxes deserve confidence that others pay their fair share as well. Increasing enforcement not only catches tax cheats, but discourages others from avoiding paying their taxes.  The vast majority of Americans pay their taxes.  The IRS is committed to striking a balance between catching those who would avoid paying and providing excellent service to all taxpayers."
  • IRS Commissioner Mark Everson said, "Enforcement more than pays for itself. Particularly in a period of deficit reduction, funding IRS enforcement is a wise investment."

Tax Bill Introduced January 31:
S. 219 sponsored by Sen. Charles Grassley (R-IA) would protect the retirement security of American workers by ensuring that pension assets are adequately diversified and by providing workers with adequate access to, and information about, their pension plans.

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