Daily Tax Update - April 9, 2008

WAYS AND MEANS COMMITTEE APPROVES HOUSING STIMULUS BILL: Today, the House Ways and Means Committee passed a modified version of the Housing Assistance Tax Act of 2008. The Chairman’s mark, approved today, strikes a proposed fixed 9 percent tax credit for low-income housing, raises the phaseout limit for joint filers claiming a first-time homebuyer tax credit to $140,000 from $110,000, and makes temporary the repeal of the low-income tax credit recapture bond provision. The House bill, unlike the Senate version, is offset with a basis-reporting requirement for securities transactions and by delaying implementation of the worldwide interest allocation.

HEARING SCHEDULED ON TAX FILING FRAUD: IDENTITY THEFT AND THE IRS RESPONSE:  Tomorrow, the Senate Finance Committee will convene a hearing entitled, “Identity Theft: Who’s Got Your Number?” The hearing will address the consequences of tax related identity theft for victims, how the IRS processes fail to adequately manage the issue, and what immediate steps the agency can take to improve its overall strategy in dealing with identity theft. Witnesses at the hearing will include IRS Commissioner Douglas Shulman.

TAX BILLS INTRODUCED APRIL 8TH:
H.R.5716: To amend the Internal Revenue Code of 1986 to provide taxpayer protection and assistance, and for other purposes.
Sponsor: Rep Becerra, Xavier [CA-31] (introduced 4/8/2008)      Cosponsors (2)

H.R.5719: To amend the Internal Revenue Code of 1986 to conform return preparer penalty standards, delay implementation of withholding taxes on government contractors, enhance taxpayer protections, assist low-income taxpayers, and for other purposes.
Sponsor: Rep Rangel, Charles B. [NY-15] (introduced 4/8/2008)      Cosponsors (16)

 H.R.5720: To amend the Internal Revenue Code of 1986 to provide assistance for housing.
Sponsor: Rep Rangel, Charles B. [NY-15] (introduced 4/8/2008)      Cosponsors (17)

H.R.5725: To amend the Internal Revenue Code of 1986 to allow employers a credit against income tax for employing members of the Ready Reserve or National Guard.
Sponsor: Rep Alexander, Rodney [LA-5] (introduced 4/8/2008)      Cosponsors (None)

H.R.5728: To amend the Internal Revenue Code of 1986 to allow individual taxpayers to designate a portion of income taxes to fund the improvement of barriers at the United States border, and for other purposes.
Sponsor: Rep Capito, Shelley Moore [WV-2] (introduced 4/8/2008)      Cosponsors (5)

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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