Daily Tax Update - June 18, 2008

WAYS AND MEANS APPROVES AMT RELIEF BILL WITH OFFSETS:  Today, the House Ways and Means Committee passed The Alternative Minimum Tax Relief Act of 2008 (H.R. 6275). The $61.5 billion legislation provides one-year of relief from the AMT and is fully offset.  The bill passed along a party-line vote.

  • The offsets in the bill include changing the taxation of carried interest, denying the Section 199 manufacturing deduction for certain major integrated oil companies, setting a limitation on treaty benefits for certain deductible payments, and requiring information returns for merchant credit card payments. 

PRESIDENT SIGNS MILITARY TAX RELIEF BILL:  Yesterday, President Bush signed into law The Heroes Earnings Assistance and Relief Tax Act of 2008. The bill extends or modifies several tax benefits for active-duty and former military service members. The revenue raisers in the bill include a provision treating foreign subsidiaries of US-based government contractors as domestic companies for tax purposes, a provision preventing wealthy US expatriates from evading taxes on their worldwide income by renouncing their US citizenship, and a provision increasing the general failure-to-file penalty for tax returns.

TAX BILLS INTRODUCED JUNE 17TH:
H.R.6275: To amend the Internal Revenue Code of 1986 to provide individuals temporary relief from the alternative minimum tax, and for other purposes.
Sponsor: Rep Rangel, Charles B. [NY-15] (introduced 6/17/2008)      Cosponsors (12)

H.R.6283: To increase the standard mileage rate for use of an automobile for business, medical, and moving deduction purposes for 2008 and permanently increase such rate for charitable deduction purposes under the Internal Revenue Code of 1986 and to temporarily increase the reimbursement rate for use of an automobile by Federal employees.
Sponsor: Rep Lewis, John [GA-5] (introduced 6/17/2008)      Cosponsors (None)

H.R.6288: To amend the Internal Revenue Code of 1986 to provide for tax-favored retirement health savings accounts, and for other purposes.
Sponsor: Rep McHugh, John M. [NY-23] (introduced 6/17/2008)      Cosponsors (3)

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.