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September 8, 2008 6:05:37 AM CDT

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Early Tax Returns in Jeopardy

Posted Dec 2, 07 2:55 PM CST in US 

(Newser) – If you're planning to file for an early tax refund this year, don't count on it. Congress has dragged its feet in creating a patch for the Alternative Minimum Tax that could make the IRS postpone filing season several weeks, the AP reports. A  limit on who's affected by the AMT expires this year; if it's not extended, 19 million taxpayers will owe an average $2,000 more in income tax.

Even if Congress acts quickly, 38 million early filers expecting $87 billion in refunds could be confused about their status; the IRS says processing erroneous early returns could “delay the whole filing system.” Already, tax form printing has been delayed. It’s a nightmare for tax advisers. "It's like playing a round of golf and then finding out that the rules have changed,” said one.

Sources Associated Press, Wall Street Journal

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Tax time looms, but the IRS may have to delay returns.   (Getty Images)
Tax season may be delayed as Congress works to deal with the effects of the expiring Alternative Minimum Tax.   (Getty Images)
This year's tax returns may be delayed.   (Getty Images)
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Congress  • IRS  • income tax  • Alternative Minimum Tax


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