Daily Tax Update - August 28, 2009

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

SUMMER 2009 STATISTICS OF INCOME BULLETIN AVAILABLE: The IRS announced the availability of the summer 2009 issue of the Statistics of Income Bulletin, which features sole proprietorship data for tax year 2007. About 23.1 million individual income tax returns reported nonfarm sole proprietorship activity, a 4.7 percent increase since tax year 2006. Reported profits for these sole proprietorships were $280.6 billion in 2007. The Statistics of Income (SOI) Division produces the SOI Bulletin on a quarterly basis. Articles included in the publication provide the most recent data available from various tax and information returns filed by US taxpayers.

  • The document can be accessed here.

MISCELLANEOUS GUIDANCE ISSUED THIS WEEK:
Notice 2009-73 announces the inflation adjustment factor and phase-out amount for the enhanced oil recovery credit for taxable years beginning in the 2009 calendar year. The notice also contains the previously published figures for taxable years beginning in the 1991 through 2008 calendar years.

Notice 2009-64 proposes a revenue ruling that would hold that tangible assets used in converting corn to fuel grade ethanol are properly included in asset class 49.5 of Rev. Proc. 87-56,1987-2 C.B. 674, for depreciation purposes. The Internal Revenue Service will not apply the revenue ruling to tangible assets that are used in converting biomass to a liquid fuel such as fuel grade ethanol that a taxpayer places in service before the final revenue ruling is published.  Comments are requested by November 23, 2009.

Revenue Procedure 2009-39 amplifies, clarifies, and modifies Rev. Proc. 2008-52, which provides procedures for taxpayers to obtain automatic consent for the changes in method of accounting described in its APPENDIX. This revenue procedure also clarifies and modifies Rev. Proc. 97-27, as amplified and modified by Rev. Proc. 2002-19, as amplified and clarified by Rev. Proc. 2002-54, and as modified by Rev. Proc. 2007-67, which provides the general procedures for obtaining non-automatic consent for changes in method of accounting.

Revenue Procedure 2009-38 provides the conditions under which the Internal Revenue Service will not assert that certain entities (or any portion thereof) created in connection with the Public-Private Investment Program constitute taxable mortgage pools for purposes of section 7701(i) of the Internal Revenue Code.

Notice 2009-74 announces the applicable percentage under ยง 613A of the Internal Revenue Code to be used in determining percentage depletion for marginal properties for the 2009 calendar year.

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.