Daily Tax Update - February 9, 2007

RANGEL INTRODUCES SMALL BUSINESS TAX BILL: Today, House Ways and Means Committee Chairman Charles Rangel (D-NY) and Ranking member Jim McCrery (R-LA) introduced the Small Business Tax Relief Act of 2007. The bill is revenue neutral and does not did not include any of the revenue raisers in the Senate small business tax bill. The House bill contains two revenue raisers: (1) provides that dependent children of wealthy taxpayers are subject to the regular 15 percent capital gains tax rate, not 5 percent as in current law or 0 percent as is scheduled to take effect next year and (2) extends the period by which the IRS must notify delinquent taxpayers of their tax liability before penalties and interest are suspended. 

  • Ranking Finance Committee member Charles Grassley (R-IA) criticized the House bill for excluding the revenue offsets in the Senate bill designed to close tax loopholes. Grassley said, "There's no good reason to delay passage of our measures to close loopholes and shut down tax shelters. It'll be pretty disappointing if the new leadership of Congress fails to live up to its reform rhetoric by abandoning these reforms."
  • Additional information can be accessed via: http://www.steptoe.com/assets/attachments/2855.pdf

TAX BILLS INTRODUCED FEBRUARY 8TH CAN BE ACCESSED VIA:
http://www.steptoe.com/assets/attachments/2854.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.