Daily Tax Update - June 29, 2007

IRS PRIVATE DEBT COLLECTION PROGRAM RECEIVES CONTINUED FUNDING: Yesterday, the House approved the fiscal year 2008 appropriations bill for the IRS and defeated a provision which would have limited funding for the IRS's private debt collection program.  The appropriations bill provides approximately $11 billion for the IRS in fiscal year 2008, nearly $52 million more than the President’s budget request. 

TAX BILLS INTRODUCED JUNE 28TH:
H.R. 2901: To amend the Internal Revenue Code of 1986 to establish a program demonstrating multiple approaches to Lifelong Learning Accounts, which are portable, worker-owned savings accounts that can be used by workers to help finance education, training, and apprenticeships and which are intended to supplement both public and employer-provided education and training resources, and for other purposes.
Sponsor: Rep. Allen, Thomas H. [ME-1] (introduced 6/28/2007)      Cosponsors (1)

H.R. 2902: To amend the Internal Revenue Code to double the child tax credit for the first year, to expand the credit dependent care services, to provide relief from the alternative minimum tax, and for other purposes.
Sponsor: Rep. Allen, Thomas H. [ME-1] (introduced 6/28/2007)      Cosponsors (19)

H.R. 2909: To amend the Internal Revenue Code of 1986 to restore the deduction for the travel expenses of a taxpayer's spouse who accompanies the taxpayer on business travel.
Sponsor: Rep. Abercrombie, Neil [HI-1] (introduced 6/28/2007)      Cosponsors (1) 

H.R. 2924: To amend the Internal Revenue Code of 1986 to expand expenses which qualify for the Hope Scholarship Credit and to make the Hope Scholarship Credit and the Lifetime Learning Credit refundable.
Sponsor: Rep. Ellison, Keith [MN-5] (introduced 6/28/2007)      Cosponsors (None)

H.R. 2936: To amend the Internal Revenue Code of 1986 to provide a shorter recovery period for the depreciation of certain improvements to retail space.
Sponsor: Rep. Neal, Richard E. [MA-2] (introduced 6/28/2007)      Cosponsors (4)

H.R. 2937: To amend the Internal Revenue Code of 1986 to provide that management and administrative activities will not be taken into account in determining if an entity has sufficient business activities in a foreign country to avoid treatment as an expatriated entity.
Sponsor: Rep. Neal, Richard E. [MA-2] (introduced 6/28/2007)      Cosponsors (None)

H.R. 2948: To amend the Internal Revenue Code of 1986 to permit health insurance to be purchased from a health savings account.
Sponsor: Rep. Walberg, Timothy [MI-7] (introduced 6/28/2007)      Cosponsors (None)

H.R. 2951: To amend the Internal Revenue Code of 1986 to modify the earned income tax credit for single, childless workers.
Sponsor: Rep Yarmuth, John A. [KY-3] (introduced 6/28/2007)      Cosponsors (1)

S. 1725: A bill to amend the Employee Retirement Income Security Act of 1974, the Internal Revenue Code of 1986, and title 5, United States Code, to improve the protection of pension benefits, and for other purposes.
Sponsor: Sen. Harkin, Tom [IA] (introduced 6/28/2007)      Cosponsors (None)

S. 1727: A bill to amend the Internal Revenue Code of 1986 to provide for a credit against income tax for certain educator expenses, and for other purposes.
Sponsor: Sen. Collins, Susan M. [ME] (introduced 6/28/2007)      Cosponsors (8)

S. 1739: A bill to amend section 35 of the Internal Revenue Code of 1986 to improve the health coverage tax credit, and for other purposes.
Sponsor: Sen. Rockefeller, John D., IV [WV] (introduced 6/28/2007)      Cosponsors (1)

S. 1743: A bill to amend the Internal Revenue Code of 1986 to repeal the dollar limitation on contributions to funeral trusts.
Sponsor: Sen. Hatch, Orrin G. [UT] (introduced 6/28/2007)      Cosponsors (3)

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.