Daily Tax Update - April 20, 2007

AGREEMENT EXPECTED SOON ON PACKAGE OF SMALL BUSINESS TAX CUTS: House Ways and Means Committee Chairman Charles Rangel (D-NY) and Senate Finance Committee Chairman Max Baucus (D-MT) are seeking an agreement by the end of next week on a package of small business tax cuts totaling about $5 billion over 10 years.  It is unclear which offsets will be included in the final package.  Ranking Ways and Means Committee member Jim McCrery (R-LA) said that he is optimistic an agreement on the offsets can be reached.  McCrery said, “That's what we're exploring now.  I think it can be done."

TAX BILLS INTRODUCED APRIL 19TH:
H.R.1937:
To amend the Internal Revenue Code of 1986 to allow a deduction for qualified timber gains and to modernize certain provisions applicable to timber real estate investment trusts.
Sponsor: Rep Davis, Artur [AL-7] (introduced 4/19/2007)      Cosponsors (13)
Committees: House Ways and Means
Latest Major Action: 4/19/2007 Referred to House committee. Status: Referred to the House Committee on Ways and Means.

H.R.1942: To amend the Internal Revenue Code of 1986 to modify the alternative minimum tax on individuals by permitting the deduction for State and local taxes and to adjust the exemption amounts for inflation.
Sponsor: Rep Garrett, Scott [NJ-5] (introduced 4/19/2007)      Cosponsors (5)
Committees: House Ways and Means
Latest Major Action: 4/19/2007 Referred to House committee. Status: Referred to the House Committee on Ways and Means.

H.R.1952: To amend title XI of the Social Security Act to achieve a national health information infrastructure, and to amend the Internal Revenue Code of 1986 to increase the deduction under section 179 for the purchase of qualified health care information technology by medical care providers.
Sponsor: Rep Gonzalez, Charles A. [TX-20] (introduced 4/19/2007)      Cosponsors (3)
Committees: House Energy and Commerce; House Ways and Means
Latest Major Action: 4/19/2007 Referred to House committee. Status: Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned. 

H.R.1954: To amend the Internal Revenue Code of 1986 to allow Indian tribal governments to transfer the credit for electricity produced from renewable resources.
Sponsor: Rep Grijalva, Raul M. [AZ-7] (introduced 4/19/2007)      Cosponsors (None)
Committees: House Ways and Means
Latest Major Action: 4/19/2007 Referred to House committee. Status: Referred to the House Committee on Ways and Means.

H.R.1959: To amend the Internal Revenue Code of 1986 to permit interest on federally guaranteed water, wastewater, and essential community facilities loans to be tax exempt.
Sponsor: Rep Lewis, Ron [KY-2] (introduced 4/19/2007)      Cosponsors (None)
Committees: House Ways and Means
Latest Major Action: 4/19/2007 Referred to House committee. Status: Referred to the House Committee on Ways and Means. 

H.R.1965: To amend the Internal Revenue Code of 1986 to modify the credit to holders of clean renewable energy bonds.
Sponsor: Rep Pomeroy, Earl [ND] (introduced 4/19/2007)      Cosponsors (1)
Committees: House Ways and Means
Latest Major Action: 4/19/2007 Referred to House committee. Status: Referred to the House Committee on Ways and Means.

H.R.1974: To amend the Internal Revenue Code of 1986 to exclude from gross income certain combat zone compensation of civilian employees of the United States .
Sponsor: Rep Wolf, Frank R. [VA-10] (introduced 4/19/2007)      Cosponsors (17)
Committees: House Ways and Means
Latest Major Action: 4/19/2007 Referred to House committee. Status: Referred to the House Committee on Ways and Means.

S.1166: A bill to amend the Internal Revenue Code of 1986 to exclude from gross income certain zone compensation of civilian employees of the United States .
Sponsor: Sen Warner, John [VA] (introduced 4/19/2007)      Cosponsors (None)
Committees: Senate Finance
Latest Major Action: 4/19/2007 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.  

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
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