Daily Tax Update - June 7, 2007

IRS ANNOUNCES APPLICATION AVAILABLE FOR REDUCED INSTALLMENT AGREEMENT USER FEE:  This week, the IRS said that the application for requesting a reduced fee for entering into an installment agreement for the payment of federal taxes owed is available, Form 13844.  To be eligible for an installment agreement, a taxpayer must first file all tax returns they are required to file and be current with estimated tax payments, if applicable.  The reduced user fee for individuals with incomes at or below the established levels does not apply to corporations or partnerships.

  • The IRS said that effective January 1, 2007, user fees rose to $105 for non-direct debit agreements, $52 for direct debit agreements and $45 for reinstatements.
  • The form can be accessed via: http://www.irs.gov/pub/irs-pdf/f13844.pdf

H.R. 2578: To amend the Internal Revenue Code of 1986 to extend and expand the benefits for businesses operating in empowerment zones, enterprise communities, or renewal communities, and for other purposes.
Sponsor: Rep. Davis, Artur [AL-7] (introduced 6/6/2007)      Cosponsors (17)

H.R. 2582: To amend the Internal Revenue Code of 1986 to allow a deduction for qualified long-term care services in computing adjusted gross income.
Sponsor: Rep. Brown-Waite, Ginny [FL-5] (introduced 6/6/2007)      Cosponsors (None)

H.R. 2588: To amend the Internal Revenue Code of 1986 to modify the annual contribution limit for Coverdell education savings accounts.
Sponsor: Rep. Drake, Thelma D. [VA-2] (introduced 6/6/2007)      Cosponsors (None)

S. 1556: A bill to amend the Internal Revenue Code of 1986 to extend the exclusion from gross income for employer-provided health coverage to designated plan beneficiaries of employees, and for other purposes.
Sponsor: Sen. Smith, Gordon H. [OR] (introduced 6/6/2007)      Cosponsors (7)

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.