IRS Commissioner: AMT Would Hit 60 Million Taxpayers Without Patch
WASHINGTON – Ways and Means Committee Ranking Member Sander Levin (D-MI) today released the following statement in response to a letter from the Internal Revenue Service. In the letter, Acting Commissioner Miller stated that, if Congress fails to extend the traditional Alternative Minimum Tax patch, approximately 60 million Americans could be affected and about 33 million taxpayers could pay the AMT for tax year 2012.
“Congress must act now to address our unfinished business and give middle-class families certainty by extending this expiring relief,” said Ways and Means Ranking Member Sander Levin. “Just as there is no reason not to extend the middle class tax cuts immediately, there is no reason Congress does not act on a bipartisan basis as it has in the past to fix the AMT. The consequences of inaction would be enormous for millions of middle class taxpayers. Extending AMT relief will prevent a substantial and unexpected tax increase on millions of Americans.”
Excerpts from Acting Commissioner Steven Miller’s letter:
“At these [current] levels, approximately 33 million taxpayers would pay AMT for tax year 2012 (with returns filed in the spring of 2013). This is about 28 million more taxpayers who would pay the AMT than if the exemption amounts were increased as in the past.”
“Taken together, the changes to the AMT exemption amount and the special tax credit ordering rules could affect more than 60 million taxpayers - nearly half of all individual income tax filers.”
“Because of the magnitude and complexity of the changes, it is entirely possible that these taxpayers would not be able to file until late March 2013, if not even later. Tens of millions of these taxpayers would unexpectedly have to pay additional income tax for 2012, leaving them with a balance due return or a much smaller refund than expected. For millions of other taxpayers, refunds would be delayed.”
Read the full letter here.