Daily Tax Update - April 28, 2008

DIRECT DEPOSIT OF ECONOMIC STIMULUS CHECKS TO BEGIN TODAY:  The IRS said that it has begun to transfer economic stimulus payments to millions of Americans, some of whom will see payments in their bank accounts as early as today. The IRS will issue payments of up to $600 ($1,200 for married couples) plus $300 for eligible children younger than 17, throughout the spring and summer.

  • IRS Commissioner Doug Shulman said, “People who chose direct deposit will receive their economic stimulus payments the quickest. We know there are many people who are eligible for an economic stimulus payment who have not filed a tax return. If you think you may be eligible, even if you don’t normally file a tax return, please check it out. And, use direct deposit to get your payment faster.”
  • Additional information can be accessed via: http://www.irs.gov/newsroom/article/0,,id=181972,00.html

CONFEREES REACH “AGREEMENT IN PRINCIPLE” ON FARM BILL:  Late Friday, the House and Senate farm bill conferees said that they reached an "agreement in principle" on a farm reauthorization bill (H.R. 2419). The agreement provides for nearly $10 billion in additional customs and user fees as an offset rather than cost basis reporting for stock transactions that was proposed during earlier negotiations. While details have not been released, members of the House-Senate conference committee said that the tax package would be worth $1.4 billion.

  • Senate Finance Committee Chairman Max Baucus (D-MT) said most of the tax package for the farm bill has been worked out, but negotiators still have agriculture policy issues that need to be addressed before the final agreement is settled.

STEPTOE & JOHNSON LLP’S RECENT TAX ARTICLES & PUBLICATIONS AVAILABLE:  A list of our recent tax publications and articles is available on Steptoe’s website via: http://www.steptoe.com/publications-area-4.html

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