Daily Tax Update - July 19, 2010

PRESIDENT CALLS ON SENATE TO PASS JOBLESS BENEFITS EXTENSION AND SMALL BUSINESS TAX CUTS: Today, President Obama urged the Senate to pass an extension of unemployment benefits and a package of tax incentives for small businesses. The Senate is expected to vote on the unemployment benefits extension bill tomorrow and a small business tax incentives bill could come up later this week.

  • The President said, “[W]e must continue our efforts to do everything in our power to spur growth and hiring. And I hope the Senate acts this week on a package of tax cuts and expanded lending for small businesses, where most of America’s jobs are created. But even as we work to jumpstart job-growth in the private sector, get businesses hiring, and dig ourselves out of this economic hole, we also have another responsibility – to offer emergency relief to Americans who’ve been laid off in this recession; to help them make ends meet – and support their families – while they’re looking for another job. That’s why it’s so essential to pass the unemployment insurance extension that comes up for a vote tomorrow. “The President continued, “Over the past few weeks, a majority of Senators have tried – not once, not twice, but three times – to extend emergency relief on a temporary basis. And each time, a partisan minority in the Senate has used parliamentary maneuvers to block a vote, denying millions of people who are out of work much-needed relief. Republican leaders in the Senate are advancing a misguided notion that emergency relief somehow discourages people from looking for a job.” The President added, “Tomorrow, we’ll have another chance to offer them that relief...and I hope we seize it. It’s time to stop holding workers laid off in this recession hostage to Washington politics. It’s time to do what’s right – not for the next election, but for the middle class. It’s time to stop blocking emergency relief for Americans who are out of work and extend unemployment insurance. And that’s what I hope Members of Congress on both sides of the aisle do.”
  • The focus of the President’s weekly radio address Saturday was the small business tax incentives bill pending in the Senate. The President said, “A lot of small businesses still have trouble getting the loans and capital they need to keep their doors open and hire new workers. So we proposed steps to get them that help: Eliminating capital gains taxes on investments. Establishing a fund for small lenders to help small businesses. Enhancing successful SBA programs that help them access the capital they need. But again and again, a partisan minority in the Senate said ‘no,’ and used procedural tactics to block a simple, up-or-down vote.” The President added, “Increasing loans to small business. Renewing unemployment insurance. These steps aren’t just the right thing to do for those hardest hit by the recession – they’re the right thing to do for all of us. And I’m calling on Congress once more to take these steps on behalf of America’s workers, and families, and small business owners – the people we were sent here to serve.”

MISCELLANEOUS GUIDANCE RELEASED TODAY:
Revenue Ruling 2010-49 provides various prescribed rates 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.

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
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.