Daily Tax Update - March 12, 2007

TREASURY, IRS RELEASE UPDATED PRIORITY GUIDANCE PLAN:  Today, the Treasury Department and the IRS released the updated 2006-2007 Priority Guidance Plan, commonly referred to as the “business plan.”   According to the Treasury Department, “Although the update may indicate that a particular item on the plan has been completed, it is possible that one or more additional projects may be completed in the plan year relating to that item.  The update also includes 59 items of additional guidance, some of which have already been published.”

IRS REMINDS CORPORATIONS TO E-FILE OR FILE FOR AN EXTENSION BY MARCH 15TH:  Today, the IRS reminded certain corporations with assets of $10 million or more and whose tax year is the calendar year to e-file their returns or file for an extension by the March 15th filing deadline.  Corporate taxpayers who chose to request extensions are encouraged to submit their requests through e-file.  Businesses which operate on a calendar year rather than a fiscal year basis must file their returns for the previous year or file an application for an extension by March 15, 2007.  A corporate taxpayer who e-files an application for an extension using Form 7004 will receive immediate acknowledgement of that request and whether it has been accepted or rejected.

  • LMSB Commissioner Deborah Nolan said, “We are seeing significant increases in the number of electronically filed corporate tax returns due to the e-filing requirement for certain corporate taxpayers, the availability of enhanced electronic filing software, and the benefits realized by corporate taxpayers.  E-filing brings increased efficiencies to the IRS which will ultimately benefit all taxpayers."

TAX BILLS INTRODUCED MARCH 9TH CAN BE ACCESSED VIA:
http://www.steptoe.com/assets/attachments/2900.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.