Daily Tax Update - February 16, 2011: Geithner Suggests Corporate Tax Proposals May Be Forthcoming

GEITHNER SUGGESTS CORPORATE TAX REFORM PROPOSALS MAY BE FORTHCOMING:  In testimony before the Senate Finance Committee today, Treasury Secretary Timothy Geithner suggested that the Administration may release a set of specific proposals on corporate tax reform.  Geithner said, "There is no credible path to tax reform that doesn't require the executive and Congress working together, and ultimately requires usually somebody in my job to lay out a set of proposals in this context.  I suspect that we're going to get to that point sooner on corporate than we will on individual, but we'll meet that challenge.  We're trying to figure out how to build consensus now before we take that next step so that we maximize the chance that we get it done."

  • Some members of the Committee criticized the Administration’s lack of tax reform specifics in the FY 2012 budget proposal.  Sen. Mike Crapo (R-ID) said, "I believe the choice you made in the budget significantly undercuts the opportunity for meaningful tax reform on both the corporate and individual side.  I think the president needs to get engaged and get out and lead on this issue."
  • On the issue of a separate repatriation bill, Geithner said that the Administration "would not support" repatriation legislation "outside the context" of comprehensive corporate tax reform.
  • Testimony can be accessed here
  • Today,  House Ways and Means Chairman Dave Camp released an "Overview of $1.9 Trillion in Tax Increases" in the President's FY 2012 budget.
  • The document can be accessed here

UPCOMING WEBINAR:  FATCA: COMPLIANCE IN THE AMERICAS:  Join us on February 23rd, for a complimentary 90-minute webinar on the impact of the "Foreign Account Tax Compliance Act" ("FATCA") in the Americas.  Developed for financial institutions that may not have fully evaluated the impact of FATCA, including in particular those in Latin America and the Caribbean, the webinar will explain the provisions of the law, discuss the initial guidance on the law provided by the US Treasury Department and Internal Revenue Service, and analyze the practical implications for foreign financial institutions, as well as the extensive preparations necessary in advance of the January 1, 2013 effective date. For more information on the webinar or to register, please click here.

TAX BILLS INTRODUCED FEBRUARY 15TH:
1.  [112nd] H.R.705: To amend the Internal Revenue Code of 1986 to repeal the expansion of information reporting requirements to payments made to corporations, payments for property and other gross proceeds, and rental property expense payments, and for other purposes.
Sponsor: Rep Camp, Dave [MI-4] (introduced 2/15/2011)    Cosponsors (None)
Committees: House Ways and Means
Latest Major Action: 2/15/2011 Referred to House committee. Status: Referred to the House Committee on Ways and Means.

2.  [112nd] H.R.710: To amend the Internal Revenue Code of 1986 to allow a credit against income tax for expenses incurred in teleworking.
Sponsor: Rep Wittman, Robert J. [VA-1] (introduced 2/15/2011)    Cosponsors (None)
Committees: House Ways and Means
Latest Major Action: 2/15/2011 Referred to House committee. Status: Referred to the House Committee on Ways and Means.

3.  [112nd] H.R.721: To amend the Internal Revenue Code of 1986 to extend and modify the railroad track maintenance credit.
Sponsor: Rep Jenkins, Lynn [KS-2] (introduced 2/15/2011)    Cosponsors (3)
Committees: House Ways and Means
Latest Major Action: 2/15/2011 Referred to House committee. Status: Referred to the House Committee on Ways and Means.

4.  [112nd] H.R.722: To amend the Internal Revenue Code of 1986 to deny any deduction for direct-to-consumer advertisements of prescription drugs.
Sponsor: Rep Nadler, Jerrold [NY-8] (introduced 2/15/2011)    Cosponsors (None)
Committees: House Ways and Means
Latest Major Action: 2/15/2011 Referred to House committee. Status: Referred to the House Committee on Ways and Means.

5.  [112nd] H.R.724: To amend the Internal Revenue Code of 1986 to extend the qualifying advanced energy project credit.
Sponsor: Rep Rothman, Steven R. [NJ-9] (introduced 2/15/2011)    Cosponsors (None)
Committees: House Ways and Means
Latest Major Action: 2/15/2011 Referred to House committee. Status: Referred to the House Committee on Ways and Means.

6.  [112nd] S.347: A bill to amend the Internal Revenue Code of 1986 to provide for reporting and disclosure by State and local public employee retirement pension plans.
Sponsor: Sen Burr, Richard [NC] (introduced 2/15/2011)    Cosponsors (6)
Committees: Senate Finance
Latest Major Action: 2/15/2011 Referred to Senate committee. Status: Read twice and referred to the Committee on 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.