AMT gridlock to cause delayed refunds

There will be delays for the 2007 tax year both in processing and sending out refunds to the taxpayer.
NOV 16, 2007
By  Bloomberg
Deputy Treasury Secretary Robert Kimmitt said today that there will be delays in sending out refunds for the 2007 tax year because Congress is too late in enacting legislation amending the alternative minimum tax. Mr. Kimmitt spoke on CNBC’s “Squawk Box” television program. “There will be delays for the 2007 tax year, delays in both processing and sending out refunds to the American taxpayer,” Mr. Kimmitt said. The House has passed legislation that would prevent about 19 million middle-income taxpayers from being subject to the AMT. The bill would raise taxes on private equity and hedge fund firms, which now pay taxes mostly at a 15% capital gains rate, to ordinary income rates as high as 35%. Republicans oppose the tax increase. “We are having a debate that is now affecting the administration of the tax code,” Mr. Kimmitt said. “The longer we go until the AMT “patch” is passed, the more effect there will be on the tax season,” he said. Also speaking on “Squawk Box,” Senate Finance Committee ranking minority member Charles Grassley, R-Iowa, said there appears to be enough support in the Senate to pass the AMT “patch” without raising taxes to pay for the lost revenue from the AMT. “It looks like we have the vote in the United States Senate,” Mr. Grassley said. Action will not be taken by Congress until early December at the earliest because Congress is adjourning for 17 days for the Thanksgiving holiday.

Latest News

Why the off-channel comms problem is far from solved
Why the off-channel comms problem is far from solved

Despite a lighter regulatory outlook and staffing disruptions at the SEC, one compliance expert says RIA firms shouldn't expect a "free pass."

FINRA penalizes another broker dealer for social media miscues
FINRA penalizes another broker dealer for social media miscues

FINRA has been focused on firms and their use of social media for several years.

Advisor moves: LPL recruits Merrill alum, Raymond James adds defectors from Edward Jones and Janney
Advisor moves: LPL recruits Merrill alum, Raymond James adds defectors from Edward Jones and Janney

RayJay's latest additions bolster its independent advisor channel's presence across Pennsylvania, Florida, and Washington.

Cantor Fitzgerald to acquire hedge fund unit from UBS
Cantor Fitzgerald to acquire hedge fund unit from UBS

The deal ending more than 30 years of ownership by the Swiss bank includes six investment strategies representing more than $11 billion in AUM.

Navigating life’s big transitions for women clients
Navigating life’s big transitions for women clients

Divorce, widowhood, and retirement are events when financial advisors may provide stability and guidance.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave

SPONSORED The evolution of private credit

From direct lending to asset-based finance to commercial real estate debt.