Daily Tax Update - December 19, 2007

HOUSE EXPECTED TO PASS AMT PATCH BILL TODAY:  House leaders agreed to take up an AMT patch bill today without offsets. There had been some discussion yesterday about creating a budget point of order against the AMT and extenders legislation in 2008 until the offset from this year's temporary package had been addressed. However, the rule approved today did not include this language.

  • Rep. Mike Ross (D-AR) said that while the Blue Dogs appreciated the leadership trying to ensure that offsets would be used next year, he added, "If we can't get the Republicans in the Senate to pay for it this week with tax cheats' offshore accounts, do we really believe they are going to pay for it next year?" Ross said that he believes the House will pass the bill tonight.
  • The Senate passed a one-year AMT patch without offsets on Monday and the House is expected to pass the Senate bill later today. The Senate is expected to adjourn later today and the House later tonight.

TAX BILLS INTRODUCED DECEMBER 18TH:
S.2517: A bill to amend the Internal Revenue Code of 1986 to provide that the proceeds of qualified mortgage bonds may be used to provide refinancing for subprime loans, to provide a temporary increase in the volume cap for qualified mortgage bonds, and for other purposes.
Sponsor: Sen Smith, Gordon H. [OR] (introduced 12/18/2007)      Cosponsors (2)

S.2518: A bill to amend the Internal Revenue Code of 1986 to simplify the individual income tax by providing an election for eligible individuals to only be subject to a simple, low-rate tax system on gross income with an individual tax credit, and for other purposes.
Sponsor: Sen Brownback, Sam [KS] (introduced 12/18/2007)      Cosponsors (None)  

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
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