Daily Tax Update - March 1, 2007

IRS SEEKS SUBMISSIONS FOR INDUSTRY ISSUE RESOLUTION PROGRAM: Today, the IRS encouraged businesses and associations to refer tax issues for the Industry Issue Resolution Program (IIR) and consideration for the 2007-2008 Treasury and IRS guidance priority list. The objective of the IIR program is to resolve business tax issues common to significant numbers of taxpayers through new and improved guidance. Submissions must be received by March 31, 2007.

WAYS AND MEANS SUBCOMMITTEE SCHEDULES HEARING ON AMT: On March 7, the House Ways and Means Select Revenue Measures Subcommittee will hold a hearing on the Alternative Minimum Tax (AMT). The Subcommittee will examine the growing scope of the AMT and its interaction with individual-based tax provisions, including the tax cuts enacted since 2001.

  • In announcing the hearing, Subcommittee Chairman Richard Neal (D-MA) said, "The AMT was originally enacted to ensure that a small group of high-income individuals who managed to avoid paying any income tax would pay at least a minimum amount of tax.  The role of the AMT today has changed significantly.  The AMT has become a stealth tax on far too many working families.  We are committed to fully understanding the scope of this problem so that we can find a solution and prevent millions of working families from a massive and unexpected tax increase."

TAX BILLS INTRODUCED FEBRUARY 28th CAN BE ACCESSED VIA:
http://www.steptoe.com/assets/attachments/2884.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.