Daily Tax Update - April 27, 2007

IRS SEEKS RECOMMENDATIONS FOR GUIDANCE PRIORITY LIST: Today, the IRS issued Notice 2007- 41, which invites public comments on recommendations for items that should be included in the IRS's 2007-08 Guidance Priority List. The IRS stated, "Although taxpayers may submit recommendations for guidance at any time during the year, recommendations are requested by May 31, 2007, for possible inclusion on the original 2007-2008 Guidance Priority List."

SENATE FINANCE SCHEDULES HEARING ON OFFSHORE TAX EVASION: On May 3, the Senate Finance Committee will hold a hearing titled, "Offshore Tax Evasion: Stashing Cash Overseas." The Treasury Department’s Acting International Tax Counsel as well as various private sector witnesses are scheduled to testify.

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.

H.R. 2069: To amend the Internal Revenue Code of 1986 to reduce emissions of carbon dioxide by imposing a tax on primary fossil fuels based on their carbon content.
Sponsor: Rep. Stark, Fortney Pete [CA-13] (introduced 4/26/2007) Cosponsors (1)

S. 1230: A bill to amend the Internal Revenue Code of 1986 to provide a refundable credit for contributions to qualified tuition programs.
Sponsor: Sen. Dodd, Christopher J. [CT] (introduced 4/26/2007) Cosponsors (None)

S. 1239: A bill to amend the Internal Revenue Code of 1986 to extend the new markets tax credit through 2013, and for other purposes.
Sponsor: Sen. Rockefeller, John D., IV [WV] (introduced 4/26/2007) Cosponsors (8)

S. 1241: A bill to amend the Internal Revenue Code of 1986 to clarify student housing eligible for the low-income housing credit, and for other purposes.
Sponsor: Sen. Grassley, Chuck [IA] (introduced 4/26/2007) Cosponsors (None)

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 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.