WASHINGTON -- Millions of Americans will have to wait to file their tax returns -- and claim refunds -- because Congress didn't move quickly enough to exempt many middle- and upper-class taxpayers from the so-called alternative minimum tax, the Internal Revenue Service said.
The IRS said Thursday it will update its computers to make taxpayer forms available by Feb. 11 that reflect the changes. Tax forms that will begin arriving in the mail next month were printed in November. Congress completed action on the legislation amending the alternative minimum tax on Dec. 19.
"We regret the inconvenience the delay will mean for millions of early tax filers, especially those expecting a refund," acting IRS Commissioner Linda Stiff said. "Our goal has always been to make sure we can accurately process tax returns while getting refunds to taxpayers as quickly as possible."
The alternative minimum tax, or AMT, was enacted in 1969 to prevent about 150 of the wealthiest families from escaping all taxes. Because it wasn't adjusted for inflation, it now affects millions of taxpayers by limiting their ability to lower taxes through certain deductions and credits.
While as many as 13.5 million people will have to wait until Feb. 11 to get the appropriate forms, the IRS said most of them normally don't file in January to get an early refund. The IRS said from 3 million to 4 million taxpayers in that group usually file early, and they are the ones who would be delayed in getting refunds.
