(Washington, DC)The IRS Oversight Board sent a letter to the leadership of the Senate Finance and House Ways and Means Committees urging action on the Alternative Minimum Tax (AMT) "patch" and so-called tax extenders. The Board echoed Acting IRS Commissioner Steven T. Miller's letter, sent last week that informed the leaders that, "Without an AMT patch, about 28 million taxpayers would be faced with a very large, unexpected tax liability for the current tax year."
The Board, which has been closely monitoring this situation, voiced a "greater sense of urgency" to address the need for retroactive extensions to already expired provisions, particularly the AMT.
The Board's letter stated that without timely congressional action, approximately 28 million taxpayers face higher tax rates. In addition, the IRS will face "a formidable operational risk" as the agency would have to reprogram its computer systems in the middle of the filing season.
"Due to the magnitude and complexity of the changes, at a minimum, more than 60 million taxpayers might have to wait until late March or later to file their returns and receive a refund," the letter noted.
The Board urged Congress not to delay any further and to take immediate action on the AMT patch and tax extenders.
The letter was delivered to Senate Finance Committee Chairman Max Baucus, Ranking Member Orrin Hatch, House Ways and Means Chairman Dave Camp, and Ranking Member Sander M. Levin.