Bush signs AMT fix - millions saved from tax increase

On Wednesday, President Bush signed the House legislation that provides a one-year patch for the Alternative Minimum Tax, keeping an estimated 23 million taxpayers from an unexpected tax increase of approximately $2,000. The total amount the government is estimating it will not receive due to the patch is about $50 billion.

Last minute wrangling in the House and Senate kept the legislation on the floor of both chambers until late in the week before Christmas as Republicans and Democrats lined up with party stands on whether or not the government is entitled to the $50 billion that would have been added to the federal coffers if the legislation had not passed.

In the end, enough Democrats sided with Republicans to allow passage of the bill, providing relief to many middle-class taxpayers.

Due to the lateness of the bill's passage, the IRS is estimating that tax return production will be slowed by four to seven weeks and has warned that taxpayers should expect similar delays in receiving refunds this spring.

Related stories:

  • House passes AMT legislation - Bush says he will sign

  • Senate won't yield on AMT legislation - bill goes back to the House

  • House AMT relief bill passes - political wrangling continues

  • Lawmakers vow to pass AMT fix before year-end

  • IRS Oversight Board tries to light an AMT fire under Congress

  • Ways and Means AMT fix expected to die in Senate

  • Ways and Means passes AMT fix, Treasury not pleased

  • New taxes, deduction limitations to replace AMT revenue

  • No repeal of AMT this year - one-year fix proposed

    You may like these other stories...

    Bank Leumi said to face $300 million demand in tax caseDavid Voreacos and Greg Farrell of Bloomberg reported on Wednesday that New York’s banking regulator will ask for more than $300 million to settle an investigation...
    Mike "the Situation" Sorrentino, one of the stars on the former TV show "Jersey Shore," is in the middle of…well, a tax situation.On October 23, the erstwhile reality show attraction was arraigned...
    Deal to lock in US tax cuts is bubbling up on the HillSome US lawmakers are exploring a post-election deal that would lock in permanent tax cuts for major corporations and low-income families, Richard Rubin of Bloomberg...

    Already a member? log in here.

    Upcoming CPE Webinars

    Nov 5Join CPA thought leader and peer reviewer Rob Cameron and learn ways to improve the outcome of your peer reviews while maximizing the value of your engagement workflow.
    Nov 18In this session Excel expert David Ringstrom, CPA tackles what to do when bad things happen to good spreadsheets.
    Nov 19How do you minimize redundant work and unnecessary steps to maximize the amount of work moving through your firm?
    Nov 20Kristen Rampe will share how to uncover new opportunities with your clients by asking powerful questions.