Daily Tax Update - February 4, 2008

TREASURY RELEASES “BLUE BOOK”:  Today, the Treasury Department released the “General Explanations of Administration’s Fiscal Year 2009 Revenue Proposals,” commonly referred to as the “Blue Book.”

  • President Bush released a $3.1 trillion budget proposal today for fiscal year 2009 that calls for permanency of the 2001 and 2003 tax cuts. The budget also calls for a $148 billion economic stimulus package and an extension of alternative minimum tax relief for tax year 2008, although it does not include revenue offsets for either proposal. The budget request also recommends extending numerous expired or expiring tax incentives including the research and development tax credit; the Subpart F “active financing” and “look-through” exceptions; permanently extending the expensing of brownfields remediation costs; and expanding the mortgage revenue bond program to allow refinancing of home mortgages.
  • The document can be accessed via: http://www.treas.gov/offices/tax-policy/library/bluebk08.pdf

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.