Daily Tax Update - April 25, 2007

JOINT COMMITTEE ON TAXATION RELEASES DESCRIPTION OF TAX PROVISIONS:  The Joint Committee on Taxation has issued the technical explanation of the “Small Business and Work Opportunity Tax Act” included in the supplemental war-funding bill.

TELECONFERENCE ON 409A REGULATIONS:  On May 1, 2007, Steptoe & Johnson LLP will host a free teleconference from 2:00 - 3:30 p.m. EDT on the recent 409A regulations.  These regulations potentially affect all employers’ deferred compensation, equity, severance, change of control, and supplemental pension plans, and employment agreements.  The teleconference is hosted by Steptoe’s employee benefits’ tax partners, Anne Moran and Don Wellington, and features guest speakers Dan Hogans, Attorney Advisor, Office of Benefits Tax Counsel at the US Treasury Department, and Cheryl Harwick of Marathon Oil.  This timely teleconference will cover compliance with key problem areas, and strategies for the final months of the transition period.  Please click here for additional details and registration.  Virginia CLE application is pending.

TAX BILLS INTRODUCED APRIL 24TH:
H.R. 2014: To amend the Internal Revenue Code of 1986 to permanently extend the 15-year recovery period for the depreciation of certain leasehold improvements and to modify the depreciation rules relating to such leasehold improvements for purposes of computing earnings and profits.
Sponsor: Rep Crowley, Joseph [NY-7] (introduced 4/24/2007)      Cosponsors (1)

H.R. 2020: To amend the Internal Revenue Code of 1986 to increase the standard mileage rate for charitable purposes to the standard mileage rate established by the Secretary of the Treasury for business purposes.
Sponsor: Rep Platts, Todd Russell [PA-19] (introduced 4/24/2007)      Cosponsors (3)

H.R. 2021: To amend the Internal Revenue Code of 1986 to increase the credit for employers establishing workplace child care facilities, to increase the child care credit to encourage greater use of quality child care services, and to provide incentives for students to earn child care-related degrees and to work in child care facilities.
Sponsor: Rep Ruppersberger, C. A. Dutch [MD-2] (introduced 4/24/2007)      Cosponsors (23)

S. 1197: A bill to amend the Internal Revenue Code of 1986 to improve the deduction for depreciation.
Sponsor: Sen Kerry, John F. [MA] (introduced 4/24/2007)      Cosponsors (1) 

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.