Early Tax Returns in Jeopardy

Congressional stalling on Alternative Minimum Tax patch may force IRS delay
By Jim O'Neill,  Newser Staff
Posted Dec 2, 2007 2:55 PM CST
Early Tax Returns in Jeopardy
Tax time looms, but the IRS may have to delay returns.   (Getty Images)

If you're planning to file for an early tax refund this year, don't count on it. Congress has dragged its feet in creating a patch for the Alternative Minimum Tax that could make the IRS postpone filing season several weeks, the AP reports. A  limit on who's affected by the AMT expires this year; if it's not extended, 19 million taxpayers will owe an average $2,000 more in income tax.

Even if Congress acts quickly, 38 million early filers expecting $87 billion in refunds could be confused about their status; the IRS says processing erroneous early returns could “delay the whole filing system.” Already, tax form printing has been delayed. It’s a nightmare for tax advisers. "It's like playing a round of golf and then finding out that the rules have changed,” said one. (More income tax stories.)

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