Daily Tax Update - June 26, 2009

THE DAILY TAX UPDATE WILL BE PUBLISHED ON A PERIODIC BASIS UNTIL CONGRESS RETURNS FROM ITS FOURTH OF JULY RECESS ON JULY 6TH 

HOUSE DEMOCRATS URGE LEADERSHIP NOT TO TARGET OVERSEAS EARNINGS: Thirty-eight members of the New Democrat Coalition wrote a letter yesterday to House Speaker Pelosi and Majority Leader Hoyer expressing their concern regarding the Administration’s proposals to raise taxes on multinational companies' overseas earnings unless they are coupled with an overhaul of the tax code.

  • The letter said, “As members of the New Democrat Coalition, we share the president's goals of restoring fairness to the tax code, increasing American competitiveness, and promoting investment in the United States. However, during these times of severe economic downturn, we must be careful to ensure that any changes to the tax code will not have unintended consequences adversely affecting the ability of American companies to compete globally.” The letter adds, “As Congress prepares to identify potential funding streams to pay for important Democratic initiatives, we respectfully request that you carefully review any changes to the corporate tax structure within the context of comprehensive tax reform.”
  • Co-signers to the letter include: Reps. Artur Davis, Ron Kind, Dan Maffei, Allyson Schwartz, Joseph Crowley, Jane Harman, Melissa Bean, and Carolyn McCarthy.  
  • For additional information, contact Mark J. Silverman - msilverman@steptoe.com or Philip R. West - pwest@steptoe.com

TAX BILLS INTRODUCED JUNE 25th:
H.R.3035: To amend the Internal Revenue Code of 1986 to exclude from gross income amounts received on account of claims based on certain unlawful discrimination and to allow income averaging for backpay and frontpay awards received on account of such claims, and for other purposes.
Sponsor: Rep Lewis, John [GA-5] (introduced 6/25/2009)      Cosponsors (1)

H.R.3049: To amend the Internal Revenue Code of 1986 to modify the application of the tonnage tax on vessels operating in the dual United States domestic and foreign trades, and for other purposes.
Sponsor: Rep Blumenauer, Earl [OR-3] (introduced 6/25/2009)      Cosponsors (8)

H.R.3050: To amend the Internal Revenue Code of 1986 to increase the limitations on the amount excluded from the gross estate with respect to land subject to a qualified conservation easement.
Sponsor: Rep Blumenauer, Earl [OR-3] (introduced 6/25/2009)      Cosponsors (2)

H.R.3056: To amend the Internal Revenue Code of 1986 to simplify the deduction for use of a portion of a residence as a home office by providing an optional standard home office deduction.
Sponsor: Rep Gonzalez, Charles A. [TX-20] (introduced 6/25/2009)      Cosponsors (None)

H.R.3060: To amend the Internal Revenue Code of 1986 to allow certain local tax debts to be collected through the reduction of Federal tax refunds.
Sponsor: Rep Moran, James P. [VA-8] (introduced 6/25/2009)      Cosponsors (4)

S.1349: A bill to amend the Internal Revenue Code of 1986 to simplify the deduction for use of a portion of a residence as a home office by providing an optional standard home office deduction.
Sponsor: Sen Snowe, Olympia J. [ME] (introduced 6/25/2009)      Cosponsors (1)

S.1357: A bill to amend the Internal Revenue Code of 1986 to provide a tax incentive to individuals teaching in elementary and secondary schools located in rural or high unemployment areas and to individuals who achieve certification from the National Board for Professional Teaching Standards, and for other purposes.
Sponsor: Sen Rockefeller, John D., IV [WV] (introduced 6/25/2009)      Cosponsors (None)

S.1360: A bill to amend the Internal Revenue Code of 1986 to exclude from gross income amounts received on account of claims based on certain unlawful discrimination and to allow income averaging for backpay and frontpay awards received on account of such claims, and for other purposes.
Sponsor: Sen Bingaman, Jeff [NM] (introduced 6/25/2009)      Cosponsors

S.1364: A bill to amend the Internal Revenue Code of 1986 to provide a credit against tax for hurricane and tornado mitigation expenditures.
(1) Sponsor: Sen Martinez, Mel [FL] (introduced 6/25/2009)      Cosponsors (1)

S.1366: A bill to amend the Internal Revenue Code of 1986 to allow taxpayers to designate a portion of their income tax payment to provide assistance to homeless veterans, and for other purposes.
Sponsor: Sen Boxer, Barbara [CA] (introduced 6/25/2009)      Cosponsors

S.1367: A bill to amend the Internal Revenue Code of 1986 to treat gold, silver, platinum, and palladium, in either coin or bar form, in the same manner as equities and mutual funds for purposes of the maximum capital gains rate for individuals.
(None)Sponsor: Sen Crapo, Mike [ID] (introduced 6/25/2009)      Cosponsors (3)

S.1371: A bill to amend the Internal Revenue Code of 1986 to provide for clean renewable water supply bonds.
Sponsor: Sen Nelson, Bill [FL] (introduced 6/25/2009)      Cosponsors (2)

S.1381: A bill to amend the Internal Revenue Code of 1986 to provide additional tax relief for small businesses, and for other purposes.
Sponsor: Sen Grassley, Chuck [IA] (introduced 6/25/2009)      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.

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.