IRS: Flood of Late Tax Filings Expected If AMT Is Not Patched
If Congress fails to patch the Alternative Minimum Tax by year's end, up to 100 million Americans could end up having to file their taxes late, IRS Acting Commissioner Steven Miller wrote in a letter to the leaders of the House Ways and Means Committee and Senate Finance Committee.
The AMT, an alternative tax measure used to ensure the wealthy pay a fair share in taxes, does not automatically adjust with inflation, so nearly 30 million taxpayers would be ensnared by it next year unless Congress acts.
The confusion associated and computer reprogramming needed could lead to a delay of 80 to 100 million tax filings, out of a total 150 million, Miller wrote.
If the AMT is "patched" next year, it would still create "substantial expense" for the IRS to reprogram its systems, he said. An AMT patch could make its way into a fiscal cliff deal, if lawmakers are able to reach a compromise before the end of the year.