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The Alternative Minimum Tax (AMT) - a pawn used as job security for Congress, CPAs, and Tax Newsletter Writer Union
Bosses, is back in the news again. And unless www.allthingsamt.com is your home page, you may not know the latest,
which includes:
- After delaying for about 354 days, Congress passed legislation on December 19 freezing the growth of AMT for another year.
- Positively, this will shield approximately 20 million families from paying an average of $2,000 extra in tax.
- Negatively, IRS computers take seven weeks to reprogram.
- As a result, the processing of 5 AMT-related tax forms will be delayed, thereby postponing any potential refunds for 3 - 4 million taxpayers until mid-to-late February.
- The delightfully named Linda Stiff, acting IRS commissioner, said, "We regret the inconvenience the delay will mean for million of early tax filers, especially those expecting a refund. [But if the dweebs in Congress would have gotten their act together sooner, we wouldn't be in this mess.]" (Bracketed section believed to have been deleted from original script.)
- The five forms affected by the late change are:
a. Form 8863, Education Credits
b. Form 5695, Residential Energy Credits
c. Form 1040A's Sched 2, Child & Dependent Care Expenses
d. Form 8396, Mortgage Interest Credit, and
e. Form 8859, District of Columbia First-Time Homebuyer Credit
Should you have any questions about AMT or a potential delay
in filing your tax return, please ask your CPA.
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