AMT (A Miserable Tax)

I am passing on a notice that I received from one of my tax organizations. The AMT tax for 2007 taxes will be a nightmare for many people if Congress does not increase the AMT exemptions like we had in 2006. And even if they act soon (who knows if they even will) it could delay thousands of tax refunds because all the IRS forms would need to be changed. This is a prime example of the laziness and horribly inefficient Congress that we have in this country. Sorry to preach but this is so frustrating to me as a tax preparer and a taxpayer.

Judy


* AMT Update * *

The current situation concerning alternative minimum tax (AMT) is foremost on the minds of everyone from taxpayers to our Congressional leaders. The most recent statistics reveal that late enactment of the AMT fix would affect up to 50 million taxpayers and delay $75 billion in refunds, as many tax calculations flow through the AMT.

According to Acting IRS Commissioner, Linda Stiff, the IRS will need ten weeks after Congress enacts the AMT patch before it can process affected returns. Refunds could be delayed, she said. The 2008 filing season starts on January 14, 2008, leaving very little time for the IRS to react.

At present, both houses of Congress have proposed and passed bills containing legislation to increase the AMT exemptions for 2007. However, none of these bills have made it to the President's desk for signature. There is no way of knowing at this point what will pass, or when.