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1. Who are the 25 million people affected by the credits? What credits are involved?

There are ten credits that are affected by AMT calculations. The IRS has provided a list of tax credits, forms, and publications that will be affected by this delay.

Link: Tax Products Impacted by the Alternative Minimum Tax

2. Who makes up the 23 million new taxpayers affected by AMT? How do I know whether my clients will fall into that category?

The IRS has created four scenarios explaining the impact of late AMT legislation.

Link: IRS AMT Scenararios

3. What if I just file paper returns? Why should I wait for electronic processing?

Paper returns will be “shelved” because the IRS will not have its system programmed to accurately process the returns. The IRS will also not likely have the personnel available to handle all the paper returns that could be filed as a result of this problem. There is the possibility of returns being “misplaced” under those circumstances.

4. But I have the forms! Or do I? What forms are affected?

There are 15 forms and at least six IRS publications that are affected

Link: Tax Products Impacted by the Alternative Minimum Tax

5. What about my software? Will they be fixing that? How long will that take?

You should check with your vendor. We anticipate that vendors will have their “fix” made long before the IRS has theirs.

6. If my vendor is ready and the software is correct, can I transmit returns?

The IRS will not be ready to receive and accurately process transmittals. Consequently they will not accept them until their system is accurately updated. Once Congress passes an AMT fix, it will likely take the IRS seven to ten weeks to properly program their computer processing systems before they can start accepting returns.

7. Where can I get more information on the affect this will have on taxpayers?

The IRS Oversight board as developed an Issue Paper – Impact of Late AMT Legislative Changes on 2008 Filing Season – that outlines the seriousness of the AMT problem facing taxpayers. The paper can be read in its entirety at http://www.ustreas.gov/irsob/ .