(Washington, DC) The IRS Oversight Board sent a letter today to the Chairman and Ranking Members of the Senate Finance and House Ways and Means Committees warning that passage of late tax legislation can cause delays in the processing of some tax returns during the 2009 tax filing season.
This year, legislation was introduced to extend certain tax credits and changes in the Alternative Minimum Tax (AMT). If the legislation is not approved in a timely manner, 26 million Americans will be subject to the AMT. Late passage of this legislation can also result in inaccurate or incomplete tax forms, in which millions fail to file for tax credits of deductions.
Although the Oversight Board takes no position on the enactment of the legislation, it recommends in the interest of sound tax administration that it be considered in a timely manner.
The letter calls on Congress to “eliminate the uncertainty facing taxpayers, the IRS, and the tax administration system by taking final action on the AMT and tax extenders before it goes into recess at the end of September.”
In the past two years, the processing of some tax returns was delayed until February because legislation affecting tax changes was not enacted until late December.
A copy of the letter is attached.