Daily Tax Update - February 6, 2008

SENATE DEMOCRATIC LEADERSHIP HOPEFUL TO HOLD ECONOMIC STIMULUS VOTE BY END OF WEEK:  Senate Majority Leader Harry Reid (D-NV) said that he expects the Senate to pass its version of the stimulus bill by the end of this week. Reid indicated that the Senate will hold only one vote on an expanded version of the Finance Committee-approved Chairman's Mark. If that bill does not receive 60 votes, another vote will be held on either the House-passed bill (H.R. 5140) or a slightly amended version of that bill.

  • The Democrats modified the Finance Committee bill by adding $1 billion of additional funding for the low-income home energy assistance program (LIHEAP) and increasing the limits on mortgage loans that can be bought by government-sponsored enterprises such as Fannie Mae and Freddie Mac from $417,000 to $729,750
  • Senate Minority Leader Mitch McConnell (R-KY) said yesterday that he would be willing to accept the Finance Committee's inclusion of Social Security recipients and veterans among those who get rebate checks. Republicans have said they oppose expanding the bill further.

TAX BILL INTRODUCED FEBRUARY 5TH:
S.2592:  A bill to amend the Internal Revenue Code of 1986 to provide for permanent tax incentives for economic growth.
Sponsor: Sen DeMint, Jim [SC] (introduced 2/5/2008)      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
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.