Daily Tax Update - June 7, 2010

SENATE COULD BEGIN DEBATING EXTENDERS BILL TOMORROW: Congress returns from its week-long Memorial Day recess and the Senate could begin deliberations on the House-passed tax extenders bill this week. Late last week, an aide to Senate Majority Leader Harry Reid said that it is “not clear yet, but we do hope to move it early next week.” If the Senate makes any changes to the House bill, the House will have to vote on the bill again. On Friday, House Speaker Pelosi said, “We will work with the Senate to complete this legislation.” 

  • Various business groups continue to express opposition to several of the bill’s offsets including the carried interest provision and a provision that could add to the tax burden of certain S corporations while Republicans have concerns over the overall cost of the bill.
  • Information on the House-passed bill can be accessed here.

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 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.