Daily Tax Update - April 15, 2008

SENATE FINANCE COMMITTEE SCHEDULES HEARINGS ON TAX REFORM: Today, the Senate Finance Committee announced a series of hearings on tax reform in preparation for a “comprehensive overhaul of the tax code” in 2009.

  • Committee Chairman Max Baucus (D-MT) said, “The Finance Committee needs to be informed and ready to go in January 2009, and that means we have to work hard now. We have to first understand pretty comprehensively how the system works today. We have to talk about the natural tensions in tax reform, and what actually happens to working families, to American businesses, and to our country’s global competitiveness depending on how we change the code. Even in a year where much won’t get done legislatively, we can build a framework of knowledge on which to review options and proposals when it’s time for tax reform.”
  • The dates for the upcoming hearings are:
    • May 13 – Taxing Individuals: This hearing will review the concept of implementing social policies through the tax code, will identify those goals that the tax code addresses most effectively, and will ask whether these goals should be part of a reformed system.
    • June 5 – Taxing Businesses: This hearing will explore the way we currently tax the income of domestic non-corporate businesses and will seek to identify the economic effects of the current multi-tiered pass-through regime.
    • July (date TBA) – Taxing American Multi-Nationals: This hearing will examine how to ensure equity and competitiveness in the taxing of multi-national companies.

TAX BILLS INTRODUCED APRIL 14TH:
H.R.5783: To amend the Internal Revenue Code of 1986 to allow taxpayers to make contributions to the Federal Government on their income tax returns.
Sponsor: Rep Campbell, John [CA-48] (introduced 4/14/2008)      Cosponsors (44)

H.R.5784: To amend the Internal Revenue Code of 1986 to allow individuals a refundable credit against income tax for the purchase of private health insurance.
Sponsor: Rep Granger, Kay [TX-12] (introduced 4/14/2008)      Cosponsors (3)

H.R.5785: To amend the Internal Revenue Code of 1986 to provide a credit for providing volunteer service to military families through the America Supports You program of the Department of Defense.
Sponsor: Rep Hill, Baron P. [IN-9] (introduced 4/14/2008)      Cosponsors (None)

H.R.5786: To amend the Internal Revenue Code of 1986 to allow a deduction for care packages provided for soldiers in combat zones.
Sponsor: Rep Hill, Baron P. [IN-9] (introduced 4/14/2008)      Cosponsors (None)

S.2851: A bill to amend the Internal Revenue Code of 1986 to modify the penalty on the understatement of taxpayer's liability by tax return preparers.
Sponsor: Sen Bunning, Jim [KY] (introduced 4/14/2008)      Cosponsors (2)

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.