Daily Tax Update - January 12, 2007

IRS ANNOUNCES BILATERAL APA BETWEEN U.S. AND CHINA: Today, the IRS announced that it had successfully concluded a bilateral APA with China, relating to Wal-Mart's operations in that country. This represents a high-profile success for the APA program that might encourage additional companies to enter the program, especially in a bilateral setting. This may be particularly true for US companies expanding operations in China, and Chinese companies expanding operations in the United States.

TAX BILLS INTRODUCED JANUARY 11TH CAN BE ACCESSED VIA:
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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.