Washington, DC – More than 3 million people will have to wait until February to get their tax refunds because of Congress's late fix to the alternative minimum tax.
Join our WhatsApp groupSubscribe to our Daily Roundup Email
Congress put a one-year freeze on growth of the alternative minimum tax last week, shielding many middle- and upper-middle income taxpayers from first exposure to the tax. But Congress's late action means the IRS won't be able to start processing related forms until February, delaying potential refunds for those people until that month.
Between 3 million and 4 million people filed in January for their 2006 taxes using those forms, with many expecting a refund, the IRS said. The average refund was $2,324, the agency said.
"We regret the inconvenience the delay will mean for million of early tax filers, especially those expecting a refund," the acting IRS commissioner, Linda Stiff, said. [NY Sun]
The upcoming tax season is expected to start on time for everyone except for certain taxpayers potentially affected by late enactment of the Alternative Minimum Tax “patch.” Following extensive work in recent weeks, the IRS expects to be able to begin processing returns for the vast majority of taxpayers in mid-January. However, as many as 13.5 million taxpayers using five forms related to the Alternative Minimum Tax (AMT) legislation will have to wait to file tax returns until the IRS completes the reprogramming of its systems for the new law.
IRS has targeted Feb. 11, as the potential starting date for taxpayers to begin submitting the five-related returns affected by the legislation. The February date allows the IRS enough time to update and test its systems to accommodate the changes without major disruptions to other operations related to the tax season. See IRS News Release 2007for more information.