Daily Tax Update - April 27, 2012: Priority Guidance Plan Updated

IRS UPDATES 2011-2012 PRIORITY GUIDANCE PLAN PROJECTS:  Today, the IRS and Treasury Department released a 2011-2012, Third Quarter Update.  The agencies said, "The third quarter update to the 2011-2012 plan reflects 9 additional projects that have become priorities and/or guidance we have published during the period from January 1, 2012 through March 31, 2012 of the plan year. We intend to update and republish the 2011-2012 plan during the plan year. The periodic updates allow us flexibility throughout the plan year to consider comments received from taxpayers and tax practitioners relating to additional projects and to respond to developments arising during the plan year. The published guidance process can be fully successful only if we have the benefit of the insight and experience of taxpayers and practitioners who must apply the rules. Therefore, we invite the public to continue to provide us with their comments and suggestions as we write guidance throughout the plan year."

SNOWE URGES REID TO CANCEL NEXT WEEK’S RECESS:  Today, Sen. Olympia Snowe (R-ME) sent a letter to Senate Majority Leader Harry Reid urging him to cancel next week’s Senate recess to address "major issues of the day."  Snowe’s letter said, "There are a number of legislative issues, including tax extenders, the 2001 and 2003 tax provisions, the physician repayment rate, appropriations bills, the planned sequester, and another debt limit increase that the Senate will be confronting in the lame-duck session at the end of 2012.  It will be essential that we are prepared for this session with thoroughly vetted, well thought out proposals that have been considered by the appropriate committees of the Senate."  Snowe’s letter continued, "We have sufficient time over the next months to consider the array of options rather than relegating these issues to the lame-duck session with last-minute, poorly thought out measures assembled by just a relative few.”  Snowe continued, “By laying the groundwork now, the committees of jurisdiction can have a thorough, transparent, and accountable process in accordance with the traditions of the Senate.  In that light, I urge you to forego the upcoming recess, and instead instruct the committees of jurisdiction to begin their work."  Both the House and Senate have scheduled a recess next week. 

MISCELLANEOUS GUIDANCE RELEASED:

Revenue Procedure 2012-26 provides the 2013 inflation adjusted deduction limitations for annual contributions made to a health savings account (HSA) under section 223.  These deduction limitations are updated annually pursuant to section 223(g) to reflect the cost-of-living adjustments. 

TAX BILLS INTRODUCED APRIL 26TH:

1. [112th] H.R.4826 : To amend the Internal Revenue Code of 1986 to allow additional investment credits for qualifying supercritical advanced coal projects.
Sponsor: Rep Davis, Geoff [KY-4] (introduced 4/26/2012)      Cosponsors (None)
Committees: House Ways and Means
Latest Major Action: 4/26/2012 Referred to House committee. Status: Referred to the House Committee on Ways and Means.

2. [112th] H.R.4953 : To amend the Internal Revenue Code of 1986 to provide a credit for the production of renewable chemicals.
Sponsor: Rep Pascrell, Bill, Jr. [NJ-8] (introduced 4/26/2012)      Cosponsors (1)
Committees: House Ways and Means
Latest Major Action: 4/26/2012 Referred to House committee. Status: Referred to the House Committee on Ways and Means.

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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