AMT debate could delay filers

The Internal Revenue Service could miss its early season filing peak if Congress waits until December to complete its tax bill, an IRS deputy commissioner said Thursday. Speaking at a conference organized by the Council for Electronic Revenue Communication Advancement, IRS deputy commissioner for operations support Richard Spires said that enactment of the alternative minimum tax bill winding that is winding through Congress would push the start of the filing season for affected taxpayers “well into the February time frame.” The House is acting on its one-year AMT “patch” today, but Senate Majority Leader Harry Reid, D-Nev., recently said that the Senate is not likely to take up the bill until December. The Senate is less likely to accept a controversial provision in the House bill that would raise tax rates on private equity managers, venture capitalists, and some real estate investors to 35% income tax rates instead of the 15% capital gains rate. The IRS says it needs at least 10 weeks from enactment to program its systems to process up to 50 million returns for taxpayers affected by the legislation.