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(EMAILWIRE.COM, December 17, 2012 ) Dallas, OR -- Top U.S. Collectors have warned of delays starting in the 2013 tax season. The delay would be a result of the Congress failing to reset the alternative minimum tax (AMT) that is imposed on high-income payers.
If adjustment by lawmakers is not found for the AMT, “many of us will see a delayed filing season,” according to Steven Miller.
Mr. Miller was named Internal Revenue Service acting commissioner last month. He did not note an exact date that Congress must meet to approve the AMT “patch” that will prevent delay to the tax season.
"We don't have any drop-dead time in mind," Miller told reporters after a speech at a conference in Washington.
Unfortunately, the remarks made by Miller come on the same day as Washington Democrats and Republicans continue their fighting over how to handle the fiscal cliff.
"Many people don't realize that they could potentially face a significantly delayed filing season and a much bigger tax bill for 2012," if the AMT is not dealt with, Miller said.
He continued, stating: "In programming our systems, the IRS has assumed that Congress will patch the AMT as Congress has for so many years. And I remain optimistic that the fiscal cliff debate will be resolved by the end of the year. If that turns out not to be the case, then what is clear is that many of us will see a delayed filing season," Miller said.
The AMT is an instrument used to insure that some tax is paid by high-income persons who could otherwise severely reduce or eliminate their mandatory income tax loopholes. Currently, 4 million persons annually pay the AMT.
The AMT is unlike standard income tax, as it is indexed to fit inflation. There is a threshold that will determine who must pays the tax, and that threshold has been raised regularly.
Congress last updated the patch in 2010. Some say that without another patch, the AMT will hit as many as 33 million individuals, according to the IRS.
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