Daily Tax Update - April 6, 2012: Finance Tax Reform Hearing: Impact On State & Local Finance

FINANCE COMMITTEE TO DISCUSS WHAT TAX REFORM COULD MEAN FOR STATE AND LOCAL FINANCES:  On April 25, the Senate Finance Committee will convene a hearing to discuss what federal tax reform could mean for state and local fiscal and tax policy.  The hearing is titled "Tax Reform: What It Means for State and Local Tax and Fiscal Policy."

  • According to the Committee, "Several elements of the tax code, including the deduction for state and local taxes and tax exemptions for bonds, impact the way state and local governments manage their finances.  Federal tax policy also affects what credits and deductions state and local governments offer and what taxes they can levy.  It can also encourage states to coordinate their efforts and develop simplified, uniform tax rules.  This could reduce the burden of compliance for businesses and individuals who operate or work in multiple states, decrease the instances of taxing the same income twice and cut down on tax evasion. Baucus and the witnesses will discuss what improving our tax code through federal tax reform will mean for those individuals and businesses as well as state and local governments." 
  • The witnesses at the hearing will be:
    • Mr. Frank Sammartino, Assistant Director for Tax Analysis, Congressional Budget Office
    • Dr. Kim Rueben, Senior Fellow, Urban-Brookings Tax Policy Center
    • Mr. Walter Hellerstein, Francis Shackelford Distinguished Professor in Taxation Law, University of Georgia School of Law
    • Mr. Joseph Henchman, Vice President of Legal & State Projects, Tax Foundation
    • Mr. Sanford Zinman, Owner, Zinman Accounting

MISCELLANEOUS GUIDANCE RELEASED:

Notice 2012-30 announces the 2011 section 45K credit for fuel produced from a nonconventional source.  For 2011, the section 45K credit is only available for fuel produced from coke or coke gas (other than from petroleum based products) and is not subject to phase-out. 

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
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