Daily Tax Update - July 14, 2008

SENATE SENDS HOUSING STIMULUS BILL BACK TO HOUSE:  The Senate voted 63 to 5 Friday to pass the housing stimulus bill (H.R. 3221) and sent the legislation back to the House. The bill contains $14 billion in tax incentives. President Bush has threatened to veto the bill.

  • Senate Banking Chairman Christopher Dodd said, “[The House] will send it back soon hopefully then we can send it back to the president some time next week.”
  • Revenue raisers in the bill include information reporting for payment card and third-party network transactions denial of excludable gains from the sale of a primary residence for periods in which the home was not used as a primary residence, and imposition of or increases in several failure-to-file penalties.

TAX BILL INTRODUCED JULY 11TH:
S.3254: A bill to amend the Internal Revenue Code of 1986 to allow banks to be taxed as limited liability companies, and for other purposes.
Sponsor: Sen Hatch, Orrin G. [UT] (introduced 7/11/2008)      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.