Daily Tax Update - September 24, 2012: Congress Set to Recess

September 24, 2012

CONGRESS SET TO RECESS:  The House and Senate are scheduled to recess by this weekend for a seven-week break until after the November 6th elections.  The Senate is expected to hold a cloture vote on the continuing resolution tomorrow morning followed by a vote on Sunday.  The House has already cleared the continuing resolution.  The stop-gap measure would fund the government through March 27.

  • Top House Democratic leaders wrote Speaker John Boehner yesterday urging him to stay in session to work on unfinished business.  The Democrats' letter said, "Democrats do not believe the House should recess this week, or at all, until we have met our responsibilities to the American people…  Our nation can ill-afford economic uncertainty that will result from Congress remaining idle for another [seven] weeks."  However, Senate Democrats expressed optimism that an agreement could be reached in a lame duck session on impending tax increases and automatic spending cuts.  Senate Majority Leader Harry Reid said yesterday, “" do not believe that we will go over the fiscal cliff."

ROMNEY RELEASES TAX RETURNS:  Gov. and Mrs. Romney's complete 2011 tax return is now available, in addition to their complete 2010 tax return. 

TAX BILLS INTRODUCED SEPTEMBER 20TH:

1. [112th] H.R.6448 : To amend the Internal Revenue Code of 1986 to reform the
system of public financing for Presidential elections, to establish a system of public financing for Congressional elections, to promote the disclosure of disbursements made in coordination with campaigns for election for Federal office, and for other purposes.
Sponsor: Rep Price, David E. [NC-4] (introduced 9/20/2012)   Cosponsors (6)
Committees: House Administration; House Ways and Means
Latest Major Action: 9/20/2012 Referred to House committee. Status: Referred to the Committee on House Administration, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

2. [112th] H.R.6462 : To amend the Internal Revenue Code of 1986 to facilitate water leasing and water transfers to promote conservation and efficiency.
Sponsor: Rep Gardner, Cory [CO-4] (introduced 9/20/2012)   Cosponsors (2)
Committees: House Ways and Means
Latest Major Action: 9/20/2012 Referred to House committee. Status: Referred to the House Committee on Ways and Means.

3. [112th] H.R.6468 : To amend the Internal Revenue Code of 1986 to clarify that tar sands are crude oil for purposes of the Federal excise tax on petroleum.
Sponsor: Rep Markey, Edward J. [MA-7] (introduced 9/20/2012)   Cosponsors (2)
Committees: House Ways and Means
Latest Major Action: 9/20/2012 Referred to House committee. Status: Referred to the House Committee on Ways and Means.

4. [112th] H.R.6472 : To amend the Internal Revenue Code of 1986 to expand the availability of the saver's credit, to make the credit refundable, and to make Federal matching contributions into the retirement savings of the taxpayer.
Sponsor: Rep Neal, Richard E. [MA-2] (introduced 9/20/2012)   Cosponsors (5)
Committees: House Ways and Means
Latest Major Action: 9/20/2012 Referred to House committee. Status: Referred to the House Committee on Ways and Means.

5. [112th] S.3581 : A bill to amend the Internal Revenue Code of 1986 to modify the credit for carbon dioxide sequestration.
Sponsor: Sen Conrad, Kent [ND] (introduced 9/20/2012)   Cosponsors (2)
Committees: Senate Finance
Latest Major Action: 9/20/2012 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.

6. [112th] S.3591 : A bill to amend the Internal Revenue Code of 1986 to improve and extend the deduction for new and existing energy-efficient commercial buildings, and for other purposes.
Sponsor: Sen Snowe, Olympia J. [ME] (introduced 9/20/2012)   Cosponsors (3)
Committees: Senate Finance
Latest Major Action: 9/20/2012 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.

7. [112th] S.3594 : A bill to amend the Internal Revenue Code of 1986 to increase the alternative tax liability limitation for small property and casualty insurance companies.
Sponsor: Sen Harkin, Tom [IA] (introduced 9/20/2012)   Cosponsors (3)
Committees: Senate Finance
Latest Major Action: 9/20/2012 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.

8. [112th] S.3595 : A bill to amend the Internal Revenue Code of 1986 to provide an exception from the passive loss rules for investments in high technology research small business pass-thru entities.
Sponsor: Sen Menendez, Robert [NJ] (introduced 9/20/2012)   Cosponsors (1)
Committees: Senate Finance
Latest Major Action: 9/20/2012 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 
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