Daily Tax Update - December 4, 2007

SENATE MAJORITY LEADER VOWS TO TAKE UP AMT PATCH SOON:  Congress returns today from its Thanksgiving recess with Senate Majority Leader Harry Reid (D-NV) pledging quick action on a temporary alternative minimum tax fix. Reid said yesterday that the Senate would take up a temporary AMT patch and so-called extenders package “as soon as we can.”

  • Today, Senate Finance Committee Chairman Max Baucus (D-MT) said that he hopes to bring a temporary alternative minimum fix and extender package to the floor this week. Baucus’ proposal would include a one-year patch of the AMT without offsets and a fully offset two-year extension of the extenders. However, Baucus said that he did not have an agreement with Republicans yet, but hoped to have one soon.
  • Yesterday, President Bush urged Congress to immediately pass the AMT bill. The President said, “The longer Congress delays action, the longer Americans will wait—likely wait to get their tax refund checks next year. If Congress fails to act, as many as 25 million Americans would be subject to the AMT. On average, these taxpayers—many of them middle class families—would have to send an extra $2,000 to the IRS next April. At a time when many Americans are struggling with home mortgages and healthcare costs, the last thing they need is for Congress to stick them with an additional tax increase.” 
  • Senate Minority Leader Mitch McConnell (R-KY) said yesterday that he believes the chances of getting an AMT patch completed are "very good" because "I think we all want to fix it."

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.