Daily Tax Update - June 12, 2008

HOUSE AND SENATE HOPEFUL TO PASS COMPROMISE HOUSING STIMULUS BILL:  Although the House and Senate have already passed differing versions of housing stimulus bills, a formal conference has not taken place to try to reconcile the differences in the two bills. Key staff on the tax-writing committees are discussing a compromise housing tax bill that could be incorporated into the housing stimulus bill.

  • Senate Finance Committee member Charles Schumer (D-NY) said, “It's our plan to try to bring the housing legislation to the floor before the July 4 break because...housing is at the nub of the problems in this economy.” Schumer added, “The broad outlines are [in the works], but we probably wouldn't get to it until after the July 4 break. We believe it should contain things beyond just rebate checks, such as infrastructure spending, money to the states. But depending on the state of the economy, we would certainly entertain rebates as well.”
  • The House-passed housing stimulus bill is fully offset by using securities basis reporting as well as a reduction and one-year delay in the worldwide interest allocation benefit.

TAX BILLS INTRODUCED JUNE 11TH:
H.R.6237: To amend the Internal Revenue Code of 1986 to provide for a credit for long-term care insurance premiums and for taxpayers with long-term care needs.
Sponsor: Rep Courtney, Joe [CT-2] (introduced 6/11/2008)      Cosponsors (None)

H.R.6242: To amend the Internal Revenue Code of 1986 to repeal the 1993 income tax increase on Social Security benefits, and for other purposes.
Sponsor: Rep Musgrave, Marilyn N. [CO-4] (introduced 6/11/2008)      Cosponsors (None)

H.R.6243: To amend the Internal Revenue Code of 1986 to provide an exemption from the Federal motor fuels excise tax for ground emergency and non-emergency ambulance services.
Sponsor: Rep Ramstad, Jim [MN-3] (introduced 6/11/2008)      Cosponsors (None)

S.3115: A bill to amend title I of the Employee Retirement Income Security Act of 1974, title XXVII of the Public Health Service Act, and the Internal Revenue Code of 1986 to prohibit preexisting condition exclusions for children in group health plans and health insurance coverage in the group and individual markets.
Sponsor: Sen Lautenberg, Frank R. [NJ] (introduced 6/11/2008)      Cosponsors (1)

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.