Daily Tax Update - December 6, 2006

NEGOTIATIONS CONTINUE OVER CONTENT OF EXTENDERS PACKAGE:
House and Senate tax-writers are working to try to come to an agreement concerning the content of a tax extenders package.  The lawmakers are trying to resolve how to handle a provision that would be attached to the extenders package that would prevent a cut in physician payments under Medicare scheduled to take effect next year. The Senate may pass its own version of a tax extenders package today which would have to be harmonized with any House-passed bill.  If the lawmakers can not reach an agreement on a bill before adjournment at the end of this week, it will have to be deferred until next year.  Although there was some discussion of including a one-year extension of alternative minimum tax relief in the extenders package, including it with the extenders tax provisions would have exceeded the Senate budget rules. 

TAX BILLS INTRODUCED DECEMBER 5

  • H.R. 6354 sponsored by Rep. Michael Burgess (R-TX) would increase the credit for biodiesel used as a fuel.
  • H.R. 6367 sponsored by Rep. Steve King (R-IA) would terminate the Internal Revenue Code of 1986. 
  • S. 4075 sponsored by Sen. Charles Schumer (D-NY) would apply the joint return limitation for capital gains exclusion to certain post-marriage sales of principal residences by surviving spouses.

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.