Daily Tax Update - August 21, 2009

THE DAILY TAX UPDATE WILL BE PUBLISHED ON A PERIODIC BASIS UNTIL CONGRESS RETURNS FROM ITS AUGUST RECESS ON SEPTEMBER 8TH

BAUCUS: HEALTH CARE TALKS “PRODUCTIVE”:  Senate health care negotiators held a conference call last night and agreed to keep working on a bill that will have broad bipartisan support. Finance Committee Chairman Max Baucus said, “As we travel our states, our work on health care reform continues. Tonight was a productive conversation—we discussed our progress and remain committed to continuing our path toward a bipartisan health care reform bill.” Baucus added, “Our discussion included an increased emphasis on affordability and reducing costs, and our efforts moving forward will reflect that focus. We have come a long way, will continue our work throughout August and plan to meet again before the Senate returns in September.” Baucus has said that he wants to complete the bipartisan negotiations by September 15th.

  • Ranking Finance Committee member Charles Grassley issued a statement yesterday that said, “I've said all year that something as big and important as health care legislation should have broad-based support. So far, no one has developed that kind of support, either in Congress or at the White House. That doesn’t mean we should quit. It means we should keep working until we can put something together that gets that widespread support.”
  • In a radio address yesterday, President Obama said, “We are willing to make compromises.” However, he added that he is not willing to give up on “core principles.”
  • Regarding the public option proposal in the House bill, House Speaker Nancy Pelosi said yesterday, "I don't know how you would scale it down. There's no way I can pass a bill in the House of Representatives without a public option."

MISCELLANEOUS GUIDANCE ISSUED THIS WEEK:
Revenue Ruling 2009-29 (released August 18) provides various prescribed rates for Sept. 2009 for federal income tax purposes including the applicable federal interest rates, the adjusted applicable federal interest rates, the adjusted federal long-term rate, the adjusted federal long-term tax-exempt rate. These rates are determined as prescribed by § 1274. The rates are published monthly for purposes of sections 42, 382, 412, 1288, 1274, 7520, 7872, and various other sections of the Internal Revenue Code.

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