Daily Tax Update - July 22, 2008

ADMINISTRATION REAFFIRMS HOUSING STIMULUS BILL VETO THREAT:  Yesterday, the White House reaffirmed a veto threat against the housing stimulus bill if it contains a provision relating to grants for states and localities to buy and rehabilitate foreclosed properties. The House is expected to consider the bill tomorrow.

  • A White House spokesman said, “We have a veto threat on the bill – that provision is one of the major concerns with the bill.” Speaker Nancy Pelosi responded, “Let me get this straight. The President is asking us to do something quite significant on the housing crisis, and he is going to prevent local governments from buying up these properties?”
  • The bill contains three revenue offsets including: requiring information returns for merchant payment card reimbursements; delaying the implementation of the worldwide interest allocation rule; and modifying the exclusion of gain on sale of a principal residence.
  • A summary of the bill can be accessed via: http://www.steptoe.com/attachment.html/3482.pdf

TAX BILL INTRODUCED JULY 21ST:
S.3291: A bill to amend the Internal Revenue Code of 1986 to treat certain income and gains relating to fuels as qualifying income for publicly traded partnerships.
Sponsor: Sen Harkin, Tom [IA] (introduced 7/21/2008)      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.

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