Daily Tax Update - April 29, 2010

EXTENDERS BILL WILL FORGO FORMAL CONFERENCE: House Ways and Means Democrats met yesterday to discuss provisions in the extenders package. A meeting between Ways and Means Chairman Sander Levin and Senate Finance Chairman Max Baucus is expected to occur by early next week. Once differences in the House and Senate bills are worked out, it will go straight to the floor without a formal conference.

  • Levin said that the majority of the extenders will be renewed for only one year. However, if the bill includes an extension of the Build America Bonds program, Levin said that those provisions could be extended for a longer timeframe.
  • The tax-writers are trying to find offsets to help pay for the $30 billion package of tax extenders since some of the offsets in the original bill were used to help pay for health care reform. Levin wants to have the extenders bill completed by Memorial Day.

IRS SEEKS APPLICATIONS FOR INFORMATION REPORTING ADVISORY COUNCIL: Today, the IRS announced that it is requesting membership nominations for the Information Reporting Program Advisory Committee (IRPAC), which provides recommendations to IRS leadership on a wide range of information reporting and administration issues. IRPAC consists of up to 35 members who are appointed to three-year terms by the IRS Commissioner. About one third of the membership terms expire each year. Nominations are currently being accepted for up to nine appointments which will begin January 2011. The deadline for submitting applications is May 28, 2010.

  • Additional information can be accessed here.

MISCELLANEOUS GUIDANCE RELEASED TODAY:
Announcement 2010-34 correcting Announcement 2010-22, which incorrectly provided “www.regulations.gov” as the Federal eRulemaking Portal for the public to submit electronically comments. Announcement 2010-34 provides that the Federal eRulemaking Portal should be “notice.comments@irscounsel.treas.gov.”

TAX BILLS INTRODUCED APRIL 28TH:
H.R.5168: To amend the Internal Revenue Code of 1986 to extend the first-time homebuyer tax credit through December 31, 2010, and for other purposes.
Sponsor: Rep Ellsworth, Brad [IN-8] (introduced 4/28/2010)      Cosponsors (None)

H.R.5174: To amend the Internal Revenue Code of 1986 to modify the credit for qualified fuel cell motor vehicles by maintaining the level of credit for vehicles placed in service after 2009 and by allowing the credit for certain off-highway vehicles.
Sponsor: Rep Tonko, Paul [NY-21] (introduced 4/28/2010)      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
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