Daily Tax Update - April 30, 2007

APRIL 30TH IS “TAX FREEDOM DAY”:  Today is “Tax Freedom Day,” which is the number of days Americans work to pay taxes compared to the number of days they work to support themselves.  According to the Tax Foundation, "Americans will work longer to pay for government (120 days) than they will for food, clothing and housing combined (105 days).  Since 1986 taxes have cost more than these basic necessities. In fact, Americans will work longer to afford federal taxes alone (79 days) than they will to afford housing (62 days)."  The Tax Foundation continued, “In 2007 Americans will work another 41 days to afford their state and local taxes. That makes taxation a bigger financial burden than housing and household operation (62 days), health and medical care (52 days), food (30 days), transportation (30 days), recreation (22 days), or clothing and accessories (13 days).”

TELECONFERENCE ON 409A REGULATIONS TOMORROW:  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 Department of Treasury, 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. 

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.