Daily Tax Update - July 1, 2010

HOUSE APPROVES WALL STREET REFORM BILL – SENATE ACTION AFTER JULY FOURTH: Last night, the House passed the “Wall Street Reform and Consumer Protection Act” conference report by a vote of 237-192 vote. The Senate will not vote on the bill until after it returns from its July Fourth recess.

  • In a speech yesterday, President Obama said, “As we speak, right now, we’re on the verge of passing the most comprehensive financial reform since the Great Depression – a reform that will prevent a crisis like this from happening again. It will protect our economy from the recklessness and irresponsibility of a few on Wall Street. It will protect consumers against unfair practices of credit card companies and mortgage lenders. It’s a reform that makes sure taxpayers never have to engage in a bailout for Wall Street’s mistakes. But I have to tell you, you would think this would be a bipartisan issue – don't you? I mean, you’d think everybody would say, all right, what we were doing, that didn’t work; we've really got to tighten things up a little bit. But right now most of our friends on the – in the other party are planning to vote against this reform. The leader of the Republicans in the House said that financial reform was like – I'm quoting here – ‘using a nuclear weapon to target an ant.’ That’s what he said. He compared the financial crisis to an ant. This is the same financial crisis that led to the loss of nearly 8 million jobs. The same crisis that cost people their homes, their life savings.”
  • A summary of the bill can be accessed here

MISCELLANEOUS GUIDANCE RELEASED TODAY:
Notice 2010-51 invites public comments regarding guidance to be provided to payors and other affected persons concerning new requirements with respect to the reporting of payments made in the course of the payor’s trade or business. Section 6041 of the Internal Revenue Code generally requires information returns to be made by every person who makes payments, as defined in section 6041(a), aggregating $600 or more in any taxable year to a single payee in the course of the payor’s trade or business; new amendments to section 6041 expand reporting to payments of gross proceeds and payments to corporations.

TAX BILLS INTRODUCED JUNE 30TH:
H.R.5644: To amend the Internal Revenue Code of 1986 to repeal fossil fuel subsidies for large oil companies.
Sponsor: Rep Blumenauer, Earl [OR-3] (introduced 6/30/2010) Cosponsors (14)

S.3556: A bill to amend the Internal Revenue Code of 1986 to allow the work opportunity credit to small businesses which hire individuals who are members of the Ready Reserve or National Guard.
Sponsor: Sen Brownback, Sam [KS] (introduced 6/30/2010) 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
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