Daily Tax Update - April 4, 2008

SENATE EXPECTED TO PASS HOUSING STIMULUS BILL NEXT WEEK:  Deliberations continue in the Senate on their housing stimulus package. Today, the Senate approved two tax amendments. The first amendment would allow money-losing companies to elect to use accumulated alternative minimum tax and research and development credits in lieu of the bonus depreciation provision included in the Economic Stimulus Act. The second amendment will prevent the IRS from taxing certain grants paid to Hurricane Katrina victims. A final vote on the bill is expected by Tuesday.

  • The House Ways and Means Committee is expected to mark up a housing stimulus bill next week.

TAX BILLS INTRODUCED APRIL 3rd:
H.R.5689: To amend the Internal Revenue Code of 1986 and title 18, United States Code, to deter the smuggling of tobacco products into the United States , and for other purposes.
Sponsor: Rep Doggett, Lloyd [TX-25] (introduced 4/3/2008)      Cosponsors (104)

H.R.5691: To amend the Internal Revenue Code of 1986 to allow an above-the-line deduction for State and local real property taxes on principal residences of taxpayers who elect not to deduct State and local income and general sales taxes, a refundable credit for the increased cost in 2008 of heating oil used to heat the principal residence of the taxpayer, and to increase and make permanent the deduction for qualified tuition and related expenses.
Sponsor: Rep Shea-Porter, Carol [NH-1] (introduced 4/3/2008)      Cosponsors (None)

H.R.5693: To amend the Internal Revenue Code of 1986 to allow a credit against tax for volunteer firefighters.
Sponsor: Rep Boozman, John [AR-3] (introduced 4/3/2008)      Cosponsors (None)

H.R.5694: To amend the Internal Revenue Code of 1986 to allow a deduction for certain travel expenses of qualified emergency volunteers.
Sponsor: Rep Boozman, John [AR-3] (introduced 4/3/2008)      Cosponsors (None)

H.R.5700: To amend the Internal Revenue Code of 1986 to allow a $1,000 refundable credit for individuals who are bona fide volunteer members of volunteer firefighting and emergency medical service organizations.
Sponsor: Rep Hinchey, Maurice D. [NY-22] (introduced 4/3/2008)      Cosponsors (18)

H.R.5703: To amend the Internal Revenue Code of 1986 to provide that elderly and disabled individuals receiving in-home care under certain government programs are not liable for the payment of employment taxes with respect to the providers of such care, and for other purposes.
Sponsor: Rep Lewis, John [GA-5] (introduced 4/3/2008)      Cosponsors (None)

S.2821: A bill to amend the Internal Revenue Code of 1986 to provide for the limited continuation of clean energy production incentives and incentives to improve energy efficiency in order to prevent a downturn in these sectors that would result from a lapse in the tax law.
Sponsor: Sen Cantwell, Maria [WA] (introduced 4/3/2008)      Cosponsors (28)

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.