Daily Tax Update - December 5, 2007

SENATE MAY HOLD CLOTURE VOTE ON HOUSE AMT/EXTENDERS PACKAGE TOMORROW:  Senate Majority Leader Harry Reid (D-NV) filed cloture yesterday on a motion to proceed to the House tax bill, after discussions aimed at reaching a bipartisan agreement for Senate floor debate broke down. The House tax package includes a one-year fix to the alternative minimum tax and one-year extension of expiring tax cuts. The cost is fully offset. However, Senate Republicans are likely to block cloture because they are opposed to the offsets in the House-passed bill and want to offer additional amendments related to the 2001 and 2003 tax cuts.

  • Today, Senate Finance Committee member Mike Crapo (R-ID) predicted Congressional "pay as you go" rules would be waived to allow passage of an AMT patch without offsetting tax revenue. 

H.R.4254: To amend the Internal Revenue Code of 1986 to provide a one-time increase in the amount excludable from the sale of a principal residence by taxpayers who have attained age 50.
Sponsor: Rep Filner, Bob [CA-51] (introduced 12/4/2007)      Cosponsors (None)

H.R.4263: To amend the Internal Revenue Code of 1986 to allow a tax credit for charitable contributions to private, nonprofit charities providing health insurance premium assistance and drug co-payment assistance, thereby transitioning uninsured Americans into private insurance and transitioning Medicaid patients into private insurance, and for other purposes.
Sponsor: Rep Melancon, Charlie [LA-3] (introduced 12/4/2007)      Cosponsors (1)

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.