A friend of mine mentioned today of the "fiscal cliff" and that he read that we might not be able to submit returns until March? Anybody else heard of this?
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Not due to the "fiscal cliff", but due to the AMT mess.Originally posted by zeros View Post
The larger exemption amounts on the 6251 expired 12/31/2011, last year. This is not related to the "fiscal cliff".
The acting commissioner of the IRS has said that the IRS has assumed that the AMT patch will be fixed as it has been in the past. He said that if it isn't, the IRS will have to make some significant programming changes and because of that returns may not be able to be filed until mid to late March, if then.
Not necessarily because everyone will owe the AMT tax, but because calculations must be made on all returns to see if they do owe it. Our software does that job. If the AMT is not due, then they probably don't print the 6251. The IRS doesn't know that. So it also must make those calculations.
I have done some checks on various clients using 2011 income with the lower AMT exemption, assuming congress doesn't fix it. These 4 MFJ clients AMT ranged from $2,199 to $3,943. The AGI ranged from $86,664 to $149,705. All of these paid $0.00 AMT in 2011. All AGI were well below the $250K mentioned by our President.Jiggers, EA -
Jiggers - You Are Correct
Yes, it is the problem with the AMT patch.Comment
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If it does get delayed that much I'll use it as another excuse to recommend adjusting withholding. I'm always trying to convince people it's better to owe a little than get a giant refund. Of course, that won't help those who get refunds primarily from refundable credits.Comment
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