Daily Tax Update - April 16, 2012: Senate To Hold Procedural Vote on “Buffett Rule” Tonight

SENATE TO HOLD PROCEDURAL VOTE TONIGHT ON "BUFFETT RULE":  Later today, the Senate will hold a procedural vote on the "Paying a Fair Share Act" (S. 2230).  The Administration issued a Statement of Administration Policy (S 2230) in support of the bill.  The statement said, "The Administration strongly supports Senate passage of S. 2230, which would set a minimum tax rate for taxpayers with annual income greater than $1 million.  S. 2230 will ensure that the Nation's wealthiest people are not able to use tax preferences and shelters to reduce their tax rate below what middle class families pay."  The statement added, "The Administration believes that S. 2230 would not only make the Nation's tax system more fair, but will also help the economy by closing inefficient tax shelters and loopholes and by allowing the Nation to continue making the vital investments that strengthen the economy and provide economic security for middle class families.  All Americans are being asked to come together to make the sort of shared sacrifices that will allow the Nation to continue making crucial investments in areas that will help the economy grow and create jobs, such as education, research, and infrastructure.  In such a time, the Administration believes that continuing to allow some of the wealthiest Americans to use special tax breaks to avoid paying their fair share simply cannot be justified."

TIPS TO AVOID LAST-MINUTE TAX FILING ERRORS:  The IRS has offered several tips to prevent errors for last-minute income tax filers. 

  • The IRS suggested:  file electronically, mail the paper return to the correct address, use the correct column for the filing status claimed, fill in all requested information clearly, review all figures, use the correct routing and account numbers, sign and date the return, attach all needed attachments, and keep a copy of the return.
  • For taxpayers who cannot meet the April 17 deadline, requesting a filing extension is easy and will prevent late filing penalties.  Either use Free File or Form 4868.  But keep in mind that while an extension grants additional time to file, tax payments are still due April 17.

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.