Daily Tax Update - February 1, 2012: Portman: Corporate Tax Bill To Be Introduced "Early In This Year"

PORTMAN: CORPORATE TAX REFORM BILL TO BE INTRODUCED "EARLY IN THIS YEAR": In remarks today, Sen. Rob Portman (R-OH) stated that he hopes to introduce a bipartisan bill to cut the corporate tax rate "early in this year." Portman said that the bill will be revenue neutral and will call for cutting the corporate tax rate to 25 percent by broadening the tax base. He also said that the taxation of foreign earnings repatriated to the United States should be addressed as part of corporate tax reform. Portman acknowledged that it would be difficult to achieve corporate tax reform in an election year.

MISCELLANEOUS GUIDANCE RELEASED:

Notice 2012-14 addresses whether individuals who are eligible for services at an Indian Health Services facility are also eligible individuals for purposes of contributing to a Health Savings Account under section 223 of the Code.

TAX BILLS INTRODUCED JANUARY 31ST:

1.[112nd] H.R.3840 : Narrowing Exceptions for Withholding Taxes Act of 2012
Sponsor: Rep Stark, Fortney Pete [CA-13] (introduced 1/31/2012)      Cosponsors (2)
Committees: House Ways and Means
Latest Major Action: 1/31/2012 Referred to House committee. Status: Referred to the House Committee on Ways and Means.

2. [112nd] H.R.3852 : To amend the Internal Revenue Code of 1986 to disallow a deduction for amounts paid or incurred by a responsible party relating to a discharge of oil.
Sponsor: Rep Hastings, Alcee L. [FL-23] (introduced 1/31/2012)      Cosponsors (None)
Committees: House Ways and Means
Latest Major Action: 1/31/2012 Referred to House committee. Status: Referred to the House Committee on Ways and Means.

3. [112nd] S.2048 : A bill to amend the Internal Revenue Code of 1986 to clarify the tax treatment of certain life insurance contract transactions, and for other purposes.
Sponsor: Sen Casey, Robert P., Jr. [PA] (introduced 1/31/2012)      Cosponsors (None)
Committees: Senate Finance
Latest Major Action: 1/31/2012 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.

4. [112nd] S.2050 : A bill to amend the Internal Revenue Code of 1986 to extend certain provisions of the Creating Small Business Jobs Act of 2010, and for other purposes.
Sponsor: Sen Snowe, Olympia J. [ME] (introduced 1/31/2012)      Cosponsors (2)
Committees: Senate Finance
Latest Major Action: 1/31/2012 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.