Daily Tax Update - January 30, 2009

IRS OFFERS FREE TAX PREPARATION ASSISTANCE:  Today, the IRS announced that nearly 12,000 free tax preparation sites will be open nationwide this year as the IRS continues to expand its partnerships with nonprofit and community organizations performing vital tax preparation services for low-income and elderly taxpayers.

  • According to the IRS, “The IRS Volunteer Income Tax Assistance (VITA) Program offers free tax help to people who earn less than $42,000. The Tax Counseling for the Elderly (TCE) Program offers free tax help to taxpayers who are 60 and older. Today, partners and local officials will be hosting news conferences or issuing news releases nationwide to highlight the Earned Income Tax Credit and their free tax preparation programs. The EITC is already the government's largest cash assistance program targeted to low-income Americans. However, not all eligible taxpayers may be aware or claim the credit.”

LEGISLATIVE TEXT AND REVENUE ESTIMATES OF SENATE FINANCE ECONOMIC STIMULUS BILL AVAILABLE: The Senate Finance Committee released the bill text for the “American Recovery and Reinvestment Act of 2009.” The Senate is expected to begin consideration of the bill on Monday. 

  • Please note that two drafting errors in the text will be changed when the bill is considered on the Senate floor.  Modifications will be made to change the date on page 325, line 24, to 2011, and to change the date on page 326, line 4, to 2012. 
  • The Joint Committee on Taxation’s revenue estimates for the bill can be accessed here.

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 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.