Daily Tax Update - February 3, 2011: Senate Adopts Amendment Repealing Enhanced Form 1099 Reporting Requirements

SENATE ADOPTS AMENDMENT REPEALING ENHANCED FORM 1099 REPORTING REQUIREMENTS:  Yesterday, as part of legislation relating to the FAA, the Senate approved an amendment that would repeal the enhanced Form 1099 reporting requirements adopted as part of the 2010 health care act (the Patient Protection and Affordable Care Act, P.L. 111-148).  Under the new requirements, starting in 2012, businesses must file an information return for any payment for goods or services totaling more than $600.  House Ways and Means Committee Chair Dave Camp is expected to schedule a mark up on a House bill to repeal the reporting requirements.

BILL BANNING TAX STRATEGY PATENTS APPROVED:  Today, the Senate Judiciary Committee approved legislation that would ban patents on tax strategies.  The ban is part of the Patent Reform Act of 2011, S. 23, a broad bill intended to reform the country's patent process.  The measure would deny patents for "any strategy for reducing, avoiding, or deferring tax liability" and would also apply to pending patent applications.

TAX BILLS INTRODUCED FEBRUARY 2ND:
1. [112nd] S.256:  A bill to amend the Internal Revenue Code of 1986 to allow a credit against income tax for equity investments in small business concerns.
Sponsor: Sen Pryor, Mark L. [AR] (introduced 2/2/2011)   Cosponsors (None)
Committees: Senate Finance
Latest Major Action: 2/2/2011 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.

2. [112nd] S.258:  A bill to amend the Internal Revenue Code of 1986 to eliminate oil and gas company preferences.
Sponsor: Sen Menendez, Robert [NJ] (introduced 2/2/2011)   Cosponsors (7)
Committees: Senate Finance
Latest Major Action: 2/2/2011 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.

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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.