Daily Tax Update - June 18, 2012: Congress to Focus on Non-Tax Issues This Week

CONGRESS TO FOCUS ON NON-TAX ISSUES THIS WEEK: Congress is back in session for a two-week period until their July Fourth recess. Tax issues are on the backburner this week as Congress focuses on bills to renew surface transportation programs and a student loan interest-rate reduction bill.  Congress is also expected to focus on several reauthorization measures.

REPORT ISSUED ON EMPLOYEE STOCK OPTIONS:  The Congressional Research Service explored the advantages and disadvantages of employee stock options, explained the tax treatments involved, and described key laws and regulations concerning such options.  The report explains the "book-tax gap" as it relates to stock options and Sen. Carl Levin's bill (S. 2075).  Levin’s bill would ban certain stock option tax deductions and curb uses of offshore tax havens by companies as a way to raise $155 billion for deficit reduction, the payroll tax cut, or other key policies.

  • The report can be accessed here.

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.