Tuesday, December 25, 2007

Late tax fix means taxpayers will wait for refunds

Millions of taxpayers could find their refunds delayed next tax season due to Congress’s late action earlier this week to fix a glitch in the federal tax law.

The IRS said today that it had started to update its computer system to accommodate changes related to the Alternative Minimum Tax, passed this week by Congress and expected to be quickly approved by President Bush. But even with those efforts, the late start could delay tax-return processing—and refunds—for an estimated 15.5 million taxpayers.

“There could be delays for certain taxpayers, but we’re working to minimize the impact,” said Nancy Mathis, an IRS spokesperson.

Mathis said the IRS could not yet say exactly how many—or who—would be affected. However, based on earlier estimates by IRS Acting Commissioner Linda Stiff and the independent IRS Oversight Board, some 15.5 million returns—and some $39 million refunds—could be delayed.

The agency said it would be working over the next week to finalize its processes. Taxpayers should check the IRS’s Web site for updated information. READ ON->

Stephen Martinez EA
Tax Consultant
MSE & Assoc
Licensed to Practice before the IRS
Website: Valleytaxoffice.com
Tele (818) 787-6224

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