Daily Tax Update - February 26, 2008

IRS, TAX TREATY PARTNERS TARGET LIECHTENSTEIN ACCOUNTS:  Today, the IRS announced that it is initiating enforcement action involving more than 100 US taxpayers to ensure proper income reporting and tax payment in connection with accounts in Liechtenstein. According to the IRS, “The national tax administrations of Australia, Canada, France, Italy, New Zealand, Sweden, United Kingdom, and the United States of America, all member countries of the OECD's Forum on Tax Administration (FTA), are working together following revelations that Liechtenstein accounts are being used for tax avoidance and evasion.”

  • IRS Acting Commissioner Linda Stiff said, “Combating off-shore tax avoidance and evasion are high priorities for the IRS. We are determined to protect the United States tax system from abuse and ensure that taxpayers pay what they owe. We will use all our authority to fairly and effectively enforce our tax laws. It should be clear from recent events that there is no safe hiding place for the proceeds of tax avoidance and evasion. Anyone with hidden income and gains would be well-advised to make a prompt and complete disclosure to the Internal Revenue Service.” 

TAX BILLS INTRODUCED FEBRUARY 25TH:
H.R.5484: To amend the Internal Revenue Code of 1986 to exclude from income and employment taxes real property tax abatements for seniors and disabled individuals in exchange for services.
Sponsor: Rep Frank, Barney [MA-4] (introduced 2/25/2008)      Cosponsors (None)

S.2666: A bill to amend the Internal Revenue Code of 1986 to encourage investment in affordable housing, and for other purposes.
Sponsor: Sen Cantwell, Maria [WA] (introduced 2/25/2008)      Cosponsors (4)

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.