Daily Tax Update - July 8, 2009

BIDEN URGES CONGRESS TO PASS HEALTH CARE REFORM:  Today, Vice President Joe Biden called on Congress to pass health care legislation by the summer recess. Biden said, “We must and we will enact reform by the end of August.” Biden said that the bill is “on track” and that it will be signed into law this year. Biden added, “Reform is coming. It is on track, it is coming. We’ve never been as close as we are today, and we remain on track.” Biden also said that the President is “firm” in his goal of ensuring that the legislation is deficit-neutral.

MISCELLANEOUS GUIDANCE ISSUED TODAY:
Notice 2009-57 provides guidance as to the corporate bond weighted average interest rate and the permissible range of interest rates specified under § 412(b)(5)(B)(ii)(II) of the Internal Revenue Code as in effect for plan years beginning before 2008. It also provides guidance on the corporate bond monthly yield curve (and the corresponding spot segment rates), the 24-month average segment rates, and the funding transitional segment rates under § 430(h)(2). In addition, this notice provides guidance as to the interest rate on 30-year Treasury securities under § 417(e)(3)(A)(ii)(II) as in effect for plan years beginning before 2008, the 30-year Treasury weighted average rate under § 431(c)(6)(E)(ii)(I), and the minimum present value segment rates under § 417(e)(3)(D) as in effect for plan years beginning after 2007.

TAX BILLS INTRODUCED JULY 7TH:
H.R.3115: To amend the Internal Revenue Code of 1986 to provide credits to small businesses and their employees for health insurance coverage.
Sponsor: Rep Hodes, Paul W. [NH-2] (introduced 7/7/2009)      Cosponsors (1)

H.R.3118: To amend the Internal Revenue Code of 1986 to provide a 1-year extension of the making work pay credit.
Sponsor: Rep Murphy, Scott [NY-20] (introduced 7/7/2009)      Cosponsors (None)

S.1400: A bill to amend the Internal Revenue Code of 1986 to make permanent the depreciation classification of motorsports entertainment complexes.
Sponsor: Sen Stabenow, Debbie [MI] (introduced 7/7/2009)      Cosponsors (12)

S.1402: A bill to amend the Internal Revenue Code of 1986 to increase the amount allowed as a deduction for start-up expenditures.
Sponsor: Sen Merkley, Jeff [OR] (introduced 7/7/2009)      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.