Daily Tax Update - August 29, 2008

THE DAILY TAX UPDATE WILL BE PUBLISHED ON A PERIODIC BASIS UNTIL CONGRESS RETURNS FROM ITS AUGUST RECESS ON SEPTEMBER 8TH. 

OBAMA PLEDGES TAX FAIRNESS:  In his acceptance speech last night, Democratic presidential nominee Senator Barack Obama pledged to cut taxes for “95% of all working families.” Obama said, “So let me spell out exactly what that change would mean if I am President. Change means a tax code that doesn't reward the lobbyists who wrote it, but the American workers and small businesses who deserve it. Unlike John McCain, I will stop giving tax breaks to corporations that ship jobs overseas, and I will start giving them to companies that create good jobs right here in America. I will eliminate capital gains taxes for the small businesses and the start-ups that will create the high-wage, high-tech jobs of tomorrow. I will cut taxes—cut taxes—for 95% of all working families. Because in an economy like this, the last thing we should do is raise taxes on the middle-class.” Obama also said that he would close corporate loopholes and prevent the use of tax havens to raise revenue: “Now, many of these plans will cost money, which is why I've laid out how I'll pay for every dime—by closing corporate loopholes and tax havens that don't help America grow. But I will also go through the federal budget, line by line, eliminating programs that no longer work and making the ones we do need work better and cost less—because we cannot meet twenty-first century challenges with a twentieth century bureaucracy.” 

  • The Tax Policy Center has prepared a summary of the Presidential candidates' tax proposals.  

IRS ISSUES GUIDANCE ON ELECTION TO EXPENSE DEPRECIABLE ASSETS:  Today, the IRS issued guidance (Rev. Proc. 2008-54) on the increased amount of section 179 expensing provided by the Economic Stimulus Act of 2008 and on how the new rules interact with the increased amount of section 179 expensing for the GO Zone and the Kansas disaster area. The revenue procedure changes some procedures for making a section 179 election.

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.