Daily Tax Update - February 17, 2009

THE DAILY TAX UPDATE WILL BE PUBLISHED ON A PERIODIC BASIS UNTIL CONGRESS RETURNS FROM ITS PRESIDENTS’ DAY RECESS ON FEBRUARY 23RD.

PRESIDENT SIGNS ECONOMIC STIMULUS BILL INTO LAW:  Today, President Obama signed the $787 billion economic stimulus bill, the “American Recovery and Reinvestment Act of 2009.” The Senate passed the bill late on Friday by a vote of 60-38.

  • The President said, “Today does not mark the end of our economic troubles.  But it does mark the beginning of the end--the beginning of what we need to do to create jobs for Americans scrambling in the wake of layoffs; to provide relief for families worried they won't be able to pay next month's bills; and to set our economy on a firmer foundation.”
  • White House Press Secretary Robert Gibbs said today that the President has not ruled out another stimulus package. Gibbs said, “I think the President is going to do what’s necessary to grow this economy.” Gibbs added that while “there are no particular plans at this point for a second stimulus package...I wouldn’t foreclose it.”

TAX BILLS INTRODUCED FEBRUARY 13TH:
H.R.1058: To amend the Internal Revenue Code of 1986 to repeal the inclusion in gross income of Social Security benefits and tier 1 railroad retirement benefits.
Sponsor: Rep Franks, Trent [AZ-2] (introduced 2/13/2009)      Cosponsors (17)

H.R.1060: To amend the Internal Revenue Code of 1986 to clarify that a NADBank guarantee is not considered a Federal guarantee for purposes of determining the tax-exempt status of bonds.
Sponsor: Rep Gonzalez, Charles A. [TX-20] (introduced 2/13/2009)      Cosponsors (None)

H.R.1068: To amend the Internal Revenue Code of 1986 to impose a tax on certain securities transactions to the extent required to recoup the net cost of the Troubled Asset Relief Program.
Sponsor: Rep DeFazio, Peter A. [OR-4] (introduced 2/13/2009)      Cosponsors (7)

H.R.1070: To amend the Internal Revenue Code of 1986 to increase the limitation on the capital loss carryovers of individuals to $10,000.
Sponsor: Rep Jones, Walter B., Jr. [NC-3] (introduced 2/13/2009)      Cosponsors (None)

H.R.1087: To amend the Internal Revenue Code of 1986 to increase the deduction under section 179 for the purchase of qualified health care information technology by medical care providers, and for other purposes.
Sponsor: Rep Gingrey, Phil [GA-11] (introduced 2/13/2009)      Cosponsors (17)

H.R.1090: To amend the Internal Revenue Code of 1986 to allow a credit for care packages provided for soldiers in combat zones and a credit for providing volunteer service to military families through the America Supports You program of the Department of Defense.
Sponsor: Rep Hill, Baron P. [IN-9] (introduced 2/13/2009)      Cosponsors (None)

H.R.1092: To amend the Employee Retirement Income Security Act of 1974, Public Health Service Act, and the Internal Revenue Code of 1986 to prohibit discrimination in group health coverage and individual health insurance coverage.
Sponsor: Rep Kagen, Steve [WI-8] (introduced 2/13/2009)      Cosponsors (None)

H.R.1097: To amend the Internal Revenue Code of 1986 to provide tax relief for obtaining transportation worker identification credentials.
Sponsor: Rep Paul, Ron [TX-14] (introduced 2/13/2009)      Cosponsors (None)

S.437: A bill to amend the Internal Revenue Code of 1986 to allow the deduction of attorney-advanced expenses and court costs in contingency fee cases.
Sponsor: Sen Specter, Arlen [PA] (introduced 2/13/2009)      Cosponsors (6)

S.440: A bill to amend the Internal Revenue Code of 1986 to allow an above-the-line deduction for attorney fees and costs in connection with civil claim awards.
Sponsor: Sen Specter, Arlen [PA] (introduced 2/13/2009)      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.