Daily Tax Update - January 29, 2007

IRS ANNOUNCES NEW ONLINE STATE SALES TAX CALCULATOR: Today, the IRS announced (IR-2007-19) that it is providing a new online tool to help individuals determine whether they might benefit by electing to deduct their state and local general sales taxes. Individuals can access the new tool by entering "Sales Tax Calculator" in the search box on the IRS Web site. To use the online calculators, individuals must input their adjusted gross income, number of exemptions, and zip code. Individuals can also use the worksheet in Publication 600, State and Local General Sales Tax, which is also posted on the IRS Web site.

  • According to the IRS, "The optional deduction for state and local sales taxes was reinstated in a new tax law enacted in late December. Because of the late enactment date, the IRS previously announced that it would not begin processing returns claiming the sales tax deduction until February 3rd."
  • Additional information can be accessed via: http://www.irs.gov/individuals/article/0,,id=152421,00.html

TAX BILLS INTRODUCED JANUARY 26th CAN BE ACCESSED VIA:
http://www.steptoe.com/assets/attachments/2822.pdf

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.