Daily Tax Update - June 4, 2008

SENATE TAX EXTENDERS BILL LIKELY TO GO STRAIGHT TO FLOOR:  The Senate’s version of its tax extenders bill will probably forego a Finance Committee mark up. The bill is expected to be brought up on the Senate floor prior to the July 4th recess. Finance Committee Chairman Max Baucus (D-MT) said that the Senate version would be similar to the House bill with some modifications. Baucus also said that he was uncertain whether he would add a one-year AMT “patch.”

  • Finance Committee member Kent Conrad (D-ND) said, “Given the shortness of this year, given where people are, it may get to a resolution quicker just to go to the floor. So I think one thing we’ve learned is, there is no one magic way to get things done around here.”
  • The House extenders bill contains offsets to stay within pay-as-you-go budget rules. The offsets in the House bill would curtail an offshore deferred-compensation technique often used by hedge fund managers and delay implementation of interest allocation rules that benefit multinational corporations.
  • Additional details on the House bill can be accessed via: http://waysandmeans.house.gov/legis.asp?formmode=item&number=633.

TAX BILLS INTRODUCED JUNE 3RD:
H.R.6172: To amend the Internal Revenue Code of 1986 to allow an offset against income tax refunds to pay for State judicial debts that are past-due.
Sponsor: Rep Ramstad, Jim [MN-3] (introduced 6/3/2008)      Cosponsors (8)

H.R.6173: To amend the Internal Revenue Code of 1986 to suspend temporarily the excise tax on aviation fuel used in commercial aviation.
Sponsor: Rep Sessions, Pete [TX-32] (introduced 6/3/2008)      Cosponsors (None)

S.3076: A bill to amend the Internal Revenue Code of 1986 to provide a tax deduction for itemizers and nonitemizers for expenses relating to home schooling.
Sponsor: Sen Vitter, David [LA] (introduced 6/3/2008)      Cosponsors (None)

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.

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