Will Congress increase the AMT exemption?

[KJ Judd]

At the beginning of the month I was fairly confident Congress was going to increase the AMT exemption. Now I'm beginning to wonder. What do you think?

[JoshinNC]

They go on "vacation" at the end of this week.

Unless they go into an extended session it will be next year. I voted that they'll get it done in 2008, but kinda hope they don't do anything. If 50 million taxpayer's get a bigger than expected tax bill we could have the kind of backlash that is neccessary to effect change in the tax code (finally). When employers do withholdings for their employees they don't factor in AMT, so even the careful planning taxpayers could end up owing signifant amounts.

[geekgirldany]

I thought they would do it before the end of the year also but I agree with Josh.

How many of you have told your customers about this? Or are you waiting? I decided to wait but tried telling one of my customers yesterday about it. They could not really understand what AMT is, why it would affect them, or why they should be concerned. I might have explained it badly.

[S T]

Anxious

I am with you, I can't ever explain the AMT to clients. I try, but after the last few years, more and more of my clients are receiving small amounts of AMT extra tax liability.

The 2007 tax season probably will hold some added work and surprises for us, I hope not, as it would be nice to have a extra year to plan for some clients.

Sandy

[joanmcq]

Somehow, I think they will pass it, but on Dec 31, or in January and really screw things up for everyone. I'm warning taxpayers that may fall into it, but have really only looked at the late filers, and those that have called for tax planning. Most of my clients don't have AMT issues (yet), so I'm targeting the few that may.

[JON]

Bees quest

Does he not have that straighten yet?? Get him on a plane to DC and have him explain the presses have to run. Maybe this is another reason to have the CD.? The President is too liberal for the Republicans and hated by the Dems. Is going to get tougher, before it gets easier.

Bees can do it... Send your support. Does anyone have a place for him to stay while he is in DC??? Are there any good clubs with 60s music? We will have to send the food in care packages, so give us the address he will be at.

Merry Christmas.

[JoeW]

Pass today

I believe the House just pass it today. H.R. 3996 Goes to the President to sign.

[DaveO]

I have been talking to my AMT prone clients

Over the last couple of years. I'm starting to regret it now as I get the calls asking how this or that action would affect them for AMT. I try to explain it's far to complex for an "off the cuff" answer but that only causes them to re-phrase the question and ask again.

I prepare and view on screen the 6251 for everyone. If they are close I print it out and try to explain it to them. In a way I hope they don't fix it. I plan to have a stack of cards with our congress critters contact info on my desk.

[Brad Imsdahl]

I believe the House just pass it today. H.R. 3996 Goes to the President to sign.

The House is actually still arguing about it right now. Paul is watching them argue on C-Span. The minute they pass it, we will stop the presses and insert it into all books going out the door on Thursday. We will also post it on our updates page for those books that have already been shipped.

Make sure you are signed up for the Updates In Your Inbox http://www.thetaxbook.com/updates.asp as I will be sending everyone a PDF of the coverage tonight, assuming the House decides to pass it.

[veritas]

The news just

announced a bill is going to the president which he said he would sign. It includes a one year patch for AMT.

[Brad Imsdahl]

The House passed the bill about 45 minutes ago. I will post an update on our updates page soon.

[Brad Imsdahl]

Here is a link to the 2 page supplement that will be inserted into all books shipped after today.

http://www.thetaxbook.com/updates/2007Supplement1040.pdf

Here is the link to the update on our updates page.

http://www.thetaxbook.com/updates_view.asp?ID=90

[skhyatt]

Brad

The House passed the Senate version, so that means that the section in the supplement page that talks about provisions that did not make it yet, does not apply??? Correct?

[Gene V]

Keep your fingers cross

IRS Works to Quickly, Accurately Implement AMT Patch

IR-2007-202, Dec. 19, 2007

WASHINGTON — The Internal Revenue Service announced it will immediately begin the final reprogramming steps for its income-tax processing systems to prepare for the upcoming tax season following final passage of the Alternative Minimum Tax “patch” Wednesday by the House.

“Our people will do everything they can to quickly update our systems for this major change and make this filing season as smooth as possible for everyone,” said Linda Stiff, IRS Acting Commissioner. “Our goal is to process tax returns accurately and to issue refunds to taxpayers as quickly as possible.”

The AMT and AMT-related tax calculations affect a number of core IRS processing systems that will need to be updated. The IRS is continuing to aggressively explore options for the 2008 filing season in order to minimize the impact of processing delays on taxpayers. Additional details will be available to the public as soon as plans are finalized.

To help the tax professional and software communities prepare for the upcoming filing season, revised copies of the 12 tax forms impacted by the AMT legislation will be posted to IRS.gov within 72 hours after the AMT patch is signed into law.

As more details on the AMT situation develop, the IRS encourages taxpayers to visit IRS.gov for more information.

[Bees Knees]

The House passed the Senate version, so that means that the section in the supplement page that talks about provisions that did not make it yet, does not apply??? Correct?

The list of provisions that did not make it were in the original version of the bill passed by the House around the first of November. They were not included in the Senate version, so you are correct, they did not pass.