As the law sits right now, 23 million more Americans will be subject to AMT. Basically anyone making over about $45,000 will have the issue. That’s because one of the “patches” expires this year.
Congress is expected to fix it, but it’s too late for the IRS.
The IRS needs 12-13 weeks to preprogram their programs. They start up 1/14…so counting backwards, Congress would have needed to get this done by 10/22/07. And, they didn’t…
So, the IRS is going to hold up on tax refunds (assuming that Congress does fix this) until their computers are reprogrammed.
Every day delayed will mean one more day’s delay in getting tax refunds done.
OF COURSE: If you’re smart with your tax planning, you never get a tax refund. Instead, you check this time of year to see where you are with estimated tax to paid and where you are with payments in. Then balance it as close to zero as you can. It’s definitely slow lane to count on a refund – you’ve just made an interest free loan to the IRS. I know I can do a whole lot better job investing my money than the government can for me (ie..they have zero return!), so I don’t want to give them a dime more than I have to.
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