Alternative Minimum Tax
This post on December 13, 2007 is not the final say on AMT. As of this post the Senate has voted to suspend the tax for 2007 but the House of Representatives has not. The big problem is that our lovely Congressman and Congresswomen have already spent this new tax increase so they do not want to figure that they will not get it. You see, what our politicians did was figure that we, the taxpayers, would not realize that we are having our taxes increased in 2007. They think that we are stupid. This "shortfall" as they call it is not a "shortfall". It is really the money that they would not have gotten if AMT had been fixed to adjust to inflation years ago. As usual AMT is just another tax that has slipped in on us as we were sleeping.
For those that are not up to speed on AMT, it is actually additional tax over and above the regular income tax which is imposed on taxpayers that earn over $75,000 per year. Most of us have not been hit by it in the past. In tax year 2006 there were only about 4.5 million taxpayers who paid AMT. If our good politicians do not fix this 2007 will see about 25 million taxpayers paying this additional tax. That is a 400% increase in taxpayers.
Looking at you, my clients in 2006 I can varify that at least 115 of you who filed a tax return through Traxler & Associates, Inc. for the 2006 tax season paid or almost paid AMT.
What this now means is that if Congress does not change their evil ways approximately 460 of you will pay AMT for the 2007 tax filing season.
The news out today is that the average taxpayer will pay an additional $2,000 to the IRS if you are hit by AMT this tax season. So, in real dollars the IRS will be getting about $920,000 more tax dollars out of my clients, YOU, this 2007 season. THERE IS NOTHING YOU CAN DO, except call today to your Congressman or Congresswoman to get this fixed now.
The other problem that this has created is that the IRS is delaying the printing of forms due to this inaction of our elected officials. If they do not settle this before December 21, 2007 the tax season will not start on time for refunds. There would be even a chance that the filing deadline would be extended into May of 2008.
Call your Congressperson today.
For those that are not up to speed on AMT, it is actually additional tax over and above the regular income tax which is imposed on taxpayers that earn over $75,000 per year. Most of us have not been hit by it in the past. In tax year 2006 there were only about 4.5 million taxpayers who paid AMT. If our good politicians do not fix this 2007 will see about 25 million taxpayers paying this additional tax. That is a 400% increase in taxpayers.
Looking at you, my clients in 2006 I can varify that at least 115 of you who filed a tax return through Traxler & Associates, Inc. for the 2006 tax season paid or almost paid AMT.
What this now means is that if Congress does not change their evil ways approximately 460 of you will pay AMT for the 2007 tax filing season.
The news out today is that the average taxpayer will pay an additional $2,000 to the IRS if you are hit by AMT this tax season. So, in real dollars the IRS will be getting about $920,000 more tax dollars out of my clients, YOU, this 2007 season. THERE IS NOTHING YOU CAN DO, except call today to your Congressman or Congresswoman to get this fixed now.
The other problem that this has created is that the IRS is delaying the printing of forms due to this inaction of our elected officials. If they do not settle this before December 21, 2007 the tax season will not start on time for refunds. There would be even a chance that the filing deadline would be extended into May of 2008.
Call your Congressperson today.
posted by Traxler | 12:59 PM
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