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AMT Patch delays filing for some taxpayers

Categories Tax Tips (Fed)

Today IRS announced that filing will begin on time for all filers, except those AMT filers using the following forms:

Form 8863, Education Credits. Form 5695, Residential Energy Credits.

Form 1040A Schedule 2, Child and Dependent Care Expenses for Form 1040A Filers.

Form 8396, Mortgage Interest Credit.

Form 8859, District of Columbia First-Time Homebuyer Credit.

Although the number could go as high as 13.5 million taxpayers, it is expected to affect only about 3 million to 4 million taxpayers overall, since these forms are expected to be updated and ready for use by February 11, 2008. For all other filers, the filing season will begin as expected on January 14, 2008.

IRS announced that in keeping with previous predictions, it will take seven weeks to upgrade its systems to comply with the new provisions of the AMT patch. The upgrades are targeted for completion by February 11.

Where any of these five forms is warranted, EROs were told that they should NOT file prematurely (that is, before the new forms are able to be accepted) in anticipation of filing Form 1040X at a later date.

As long as clients are notified that the returns will not be filed until February 11, EROs may hold returns using the five forms without violating the “stockpiling” rule set forth in Publication 1345.

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