Daily Tax Update - January 12, 2009

OBAMA’S RADIO ADDRESS PROMOTES STIMULUS PLAN:  President-Elect Obama used his weekly radio address Saturday to promote passage of his economic stimulus plan. Obama said, “We start this new year in the midst of an economic crisis unlike any we have seen in our lifetime. We learned yesterday that in the past month alone, we lost more than half a million jobs - a total of nearly 2.6 million in the year 2008...These numbers are a stark reminder that we simply cannot continue on our current path. If nothing is done, economists from across the spectrum tell us that this recession could linger for years and the unemployment rate could reach double digits - and they warn that our nation could lose the competitive edge that has served as a foundation for our strength and standing in the world.” Obama added, “It's not too late to change course - but only if we take immediate and dramatic action. Our first job is to put people back to work and get our economy working again. This is an extraordinary challenge, which is why I've taken the extraordinary step of working - even before I take office - with my economic team and leaders of both parties on an American Recovery and Reinvestment Plan that will call for major investments to revive our economy, create jobs, and lay a solid foundation for future growth.”

  • Obama continued, “Finally, we won't just create jobs, we'll also provide help for those who've lost theirs, and for states and families who've been hardest-hit by this recession. That means bipartisan extensions of unemployment insurance and health care coverage; a $1,000 tax cut for 95 percent of working families; and assistance to help states avoid harmful budget cuts in essential services like police, fire, education and health care.” Obama concluded, “Now, given the magnitude of the challenges we face, none of this will come easy. Recovery won't happen overnight, and it’s likely that things will get worse before they get better. But we have come through moments like this before. We are the nation that has faced down war, depression and fear itself - each time, refusing to yield; each time, refusing to accept a lesser fate. That is the spirit that has always sustained us - that belief that our destiny is not written for us, but by us; that our success is not a matter of chance, but of our own courage and determination.” 
  • Meanwhile, House Speaker Nancy Pelosi would not specify the amount of the stimulus bill yesterday. Pelosi said, “I'm not making any announcement about a number. We haven't finished with the legislation.”

MISCELLANEOUS GUIDANCE ISSUED TODAY:
Notice 2009-11 announces that Brokers May Furnish Certain Composite Annual Tax Reporting Statements by February 17, 2009, Without Penalty. The notice provides that the new February due date established under Section 403 of the Energy Improvement and Extension Act of 2008 to provide Form 1099-B information to customers also applies to other tax information customarily reported to customers with Form 1099-B statements on an annual composite tax reporting statement. This would typically include interest and dividends reported on Form 1099-INT and Form 1099-DIV. 

TAX BILLS INTRODUCED JANUARY 9TH:
H.R.361: To amend the Internal Revenue Code of 1986 to provide a 1-year extension of the increased expensing of certain depreciable business assets and the special depreciation allowance for certain business property.
Sponsor: Rep Bright, Bobby [AL-2] (introduced 1/9/2009)      Cosponsors (None)

H.R.379: To amend the Internal Revenue Code of 1986 to ensure that all taxpayers have the ability to deduct State and local general sales taxes.
Sponsor: Rep Blackburn, Marsha [TN-7] (introduced 1/9/2009)      Cosponsors (22)

H.R.385: To amend the Internal Revenue Code of 1986 to provide tax incentives to consumers and lenders for the purchase of a passenger vehicle during 2009.
Sponsor: Rep Rogers, Mike D. [AL-3] (introduced 1/9/2009)      Cosponsors (10)

H.R.386: To amend the Internal Revenue Code of 1986 to simplify and improve the current education tax incentives.
Sponsor: Rep Doggett, Lloyd [TX-25] (introduced 1/9/2009)      Cosponsors (None)

H.R.412: To amend the Internal Revenue Code of 1986 to allow the deduction for property taxes in determining the amount of the alternative minimum taxable income of any taxpayer (other than a corporation).
Sponsor: Rep Israel, Steve [NY-2] (introduced 1/9/2009)      Cosponsors (None)

H.R.422: To amend the Internal Revenue Code of 1986 to extend the research credit through 2010 and to increase and make permanent the alternative simplified research credit.
Sponsor: Rep Meek, Kendrick B. [FL-17] (introduced 1/9/2009)      Cosponsors (1)

H.R.424: To amend the Internal Revenue Code of 1986 to extend the temporary waiver of the required minimum distribution rules for certain retirement plans and accounts for an additional year.
Sponsor: Rep Murphy, Tim [PA-18] (introduced 1/9/2009)      Cosponsors (None)

H.R.425: To amend the Internal Revenue Code of 1986 to prevent the alternative minimum tax from effectively repealing the Federal tax exemption for interest on State and local private activity bonds.
Sponsor: Rep Neal, Richard E. [MA-2] (introduced 1/9/2009)      

 H.R.426: To amend the Internal Revenue Code of 1986 to reduce the depreciation recovery period for certain roof systems.
Sponsor: Rep Pascrell, Bill, Jr. [NJ-8] (introduced 1/9/2009)      Cosponsors (8)

H.R.432: To amend the Internal Revenue Code of 1986 to allow parents of murdered children to continue to claim the deduction for the personal exemption with respect to such child.
Sponsor: Rep Poe, Ted [TX-2] (introduced 1/9/2009)

H.R.433: To amend the Internal Revenue Code of 1986 to allow employers a credit against income tax equal to 50 percent of the compensation paid to employees while they are performing active duty service as members of the Ready Reserve or the National Guard and of the compensation paid to temporary replacement employees.
Sponsor: Rep Poe, Ted [TX-2] (introduced 1/9/2009)      Cosponsors (7)

H.R.435: To amend the Internal Revenue Code of 1986 to provide a 5-year extension of the credit for electricity produced from certain renewable resources.
Sponsor: Rep Pomeroy, Earl [ND] (introduced 1/9/2009)      Cosponsors (None)

H.R.436: To amend the Internal Revenue Code of 1986 to repeal the new carryover basis rules in order to prevent tax increases and the imposition of compliance burdens on many more estates than would benefit from repeal, to retain the estate tax with a $3,500,000 exemption, and for other purposes.
Sponsor: Rep Pomeroy, Earl [ND] (introduced 1/9/2009)      Cosponsors (None)

H.R.446: To amend the Internal Revenue Code of 1986 to repeal certain limitations on the expensing of section 179 property, to allow taxpayers to elect shorter recovery periods for purposes of determining the deduction for depreciation, and for other purposes.
Sponsor: Rep Sessions, Pete [TX-32] (introduced 1/9/2009)      Cosponsors (7)

H.R.451: To amend the Internal Revenue Code of 1986 to provide a 2-year extension of the credit for electricity produced from certain renewable resources.
Sponsor: Rep Teague, Harry [NM-2] (introduced 1/9/2009)      Cosponsors (None)

H.R.452: To amend the Internal Revenue Code of 1986 to make the child credit refundable for 5 years.
Sponsor: Rep Teague, Harry [NM-2] (introduced 1/9/2009)      Cosponsors (3)

H.R.457: To amend the Internal Revenue Code of 1986 to restore the obligation of the Secretary of the Treasury to invest the balance of the Highway Trust Fund in interest-bearing obligations of the United States.
Sponsor: Rep Wittman, Robert J. [VA-1] (introduced 1/9/2009)      Cosponsors (None)

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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