Daily Tax Update - July 9, 2008

SENATE ACTION ON TAX EXTENDERS COULD OCCUR NEXT WEEK:  Senate Finance Committee Chairman Max Baucus (D-MT) is hopeful to finish the tax extenders bill “before the end of this work period.”  Congress is scheduled to break for its month-long recess on August 9th.

  • The Senate has been unsuccessful twice in obtaining the 60 votes needed for cloture on the House-passed tax extenders bill (H.R. 6049). If cloture is secured, Baucus intends to offer a substitute amendment which will include a one-year AMT patch that is not offset. The House-passed extenders bill is offset by taxing hedge fund managers' offshore deferred compensation and by delaying implementation of the worldwide interest allocation benefit.

TAX BILLS INTRODUCED JULY 8TH:
H.R.6436: To combat international oil price fixing and to amend the Internal Revenue Code of 1986 to allow individuals a credit against income tax of at least $1,000 to offset high 2008 gasoline and diesel fuel prices.
Sponsor: Rep Chabot, Steve [OH-1] (introduced 7/8/2008)      Cosponsors (None)

H.R.6441: To amend the Internal Revenue Code of 1986 to provide tax incentives for replacing an automobile with a more fuel-efficient automobile.
Sponsor: Rep Paul, Ron [TX-14] (introduced 7/8/2008)      Cosponsors (None)

S.3228: A bill to amend the Internal Revenue Code of 1986 to allow a credit for green roofs.
Sponsor: Sen Smith, Gordon H. [OR] (introduced 7/8/2008)      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.