Daily Tax Update - February 4, 2011: House Committees to Review Regulations Hurting Job Creation & Economic Growth

HOUSE COMMITTEES TO REVIEW REGULATIONS HURTING JOB CREATION AND ECONOMIC GROWTH:  Next week, the House Rules Committee will mark up a resolution "directing certain standing committees to inventory and review existing, pending, and proposed regulations and orders from agencies of the Federal Government, particularly with respect to their effect on jobs and economic growth."  The full House is expected to vote on the resolution next week.  The resolution instructs ten House Committees, including Ways and Means, to "identify regulations, executive and agency orders, and other administrative actions or procedures" and hold "hearings or oversight activities" that meet the following criteria within each Committee's jurisdiction:

  1. impede private-sector job creation;
  2. discourage innovation and entrepreneurial activity;
  3. hurt economic growth and investment;
  4. harm the Nation’s global competitiveness;
  5. limit access to credit and capital;
  6. fail to utilize or apply accurate cost-benefit analyses;
  7. create additional economic uncertainty;
  8. are promulgated in such a way as to limit transparency and the opportunity for public comment, particularly by affected parties;
  9. lack specific statutory authorization;
  10. undermine labor-management relations;
  11. result in large-scale unfunded mandates on employers without due cause; or
  12. impose undue paperwork and cost burdens on small businesses.
  • The resolution can be accessed here.

MISCELLANEOUS GUIDANCE RELEASED TODAY:
Notice 2011-13 provides guidance as to the corporate bond weighted average interest rate and the permissible range of interest rates specified under § 412(b)(5)(B)(ii)(II) of the Internal Revenue Code as in effect for plan years beginning before 2008.  It also provides guidance on the corporate bond monthly yield curve (and the corresponding spot segment rates), and the 24-month average segment rates under § 430(h)(2). In addition, this notice provides guidance as to the interest rate on 30-year Treasury securities under § 417(e)(3)(A)(ii)(II) as in effect for plan years beginning before 2008, the 30-year Treasury weighted average rate under § 431(c)(6)(E)(ii)(I), and the minimum present value segment rates under § 417(e)(3)(D) as in effect for plan years beginning after 2007.

TAX BILL INTRODUCED FEBRUARY 3RD:
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

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.