Daily Tax Update - August 10, 2010: House Passes Bill with International Offsets

The Daily Tax Update will be published on a periodic basis until Congress returns from its August recess on September 13th.

HOUSE RETURNS TO PASS EDUCATION, MEDICAID FUNDING BILL WITH INTERNATIONAL OFFSETS: Today, the House returned for one day from its August recess to take up the $26 billion Senate-passed Medicaid and education funding bill (H.R. 1586) which contains numerous international offsets. The bill passed by a vote of 247 to 161.

  • The offsets would impose a new limitation on the amount of foreign taxes deemed paid with respect to tax code Section 956 inclusion, deny the use of foreign tax credits in cases in which foreign income is not subject to US taxation by reason of covered asset acquisitions, and repeal special rules for interest and dividends received from persons meeting the 80-percent foreign business requirements. The bill also eliminates the advance refundability of the earned income tax credit.
  • The Joint Committee on Taxation's summary of the revenue provisions in the bill can be accessed here.

RANGEL: “I AM NOT GOING AWAY”: Today, in a House floor speech, former Ways and Means Committee Chairman Charles Rangel said, “I am not going away. I am here.”  Rangel added, “If I can’t get my dignity back here, then fire your best shot on getting rid of me through expulsion.” Rangel said, “You're not going to get me to resign to make you feel comfortable.” Rangel also asked for a trial soon, "Don't leave me swinging in the wind.” Last month, a House Committee on Standards of Official Conduct Subcommittee charged Rangel with 13 counts of wrongdoing.

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.