By George L. Yaksick, Jr., Washington Staff Writer
Due to congressional incompetence, the federal government is not ready for the tax filing season. But even so, taxpayers still must file their income tax returns on-time, completely and accurately. No excuses. For some filers, this will require some extra effort.
Individuals who receive 2007 Form 1040 packages in their mailboxes this week may notice a few forms missing. Some tax credit forms are not included in the 2007 Form 1040 packages because they do not reflect the AMT patch in the recently enacted Tax Increase Prevention Act of 2007. Updated forms are available online at www.irs.gov.
The IRS also posted some questions and answers about the impact of the AMT patch on the 2008 filing season on its website. The Service reminded taxpayers that they will not get more time to file because of the lateness of the AMT patch.
The number of paper filers continues to steadily decline. During the 2007 filing season, nearly 60 percent of all returns were filed electronically. However, an IRS spokesperson said that the number of electronic filers does not include individuals who use software programs to complete their Forms 1040 but then print the forms and mail them to the Service.
Affected Forms
More than 16 million 2007 Form 1040 packages are currently being mailed to taxpayers, the IRS reported on January 2. The packages are mailed to individuals who have filed paper returns in the past.
Because the AMT patch, which allows taxpayers to use most nonrefundable personal credits to offset AMT liability and gives taxpayers higher exemption amounts, was enacted so late in 2007, previously printed paper forms did not reflect the patch. The affected forms are Form 8863, Education Credits; Form
5965, Residential Energy Credits; Form 1040A, Schedule 2, Child and Dependent Care Expenses for Form 1040A Filers; Form 8396, Mortgage Interest Credit; and Form 8859, District of Columbia First-Time Homebuyer Credit.
Updated versions of these forms, which reflect the AMT patch, may be immediately downloaded from the IRS web site. Alternatively, taxpayers may contact the IRS at (800) 829-3676 and updated versions of the forms will be mailed to them as soon as they are available, the Service advised.
Expect Delays
Taxpayers using any of these five forms will not be able to file their 2007 returns until the IRS has finished reprogramming its computer systems for the AMT patch. The IRS previously announced an anticipated February 11, 2008 filing date for these taxpayers. Taxpayers who attempt to e-file any of these five forms prematurely will receive an electronic message asking them to resubmit their returns when the IRS is ready to process them.
As many as 13.5 million taxpayers may have to wait until February 11 to file, according to the IRS. However, their deadline, and the deadline for all individuals, remains April 15, 2008. Individuals may request an automatic six-month extension.
All other returns will be processed as normal starting this month, the IRS reported. E-filed returns will be accepted as of January 11. The IRS will begin processing returns on January 14, except for returns affected by the AMT patch.
- Related items:
- Congress Agrees To AMT Tax Relief at Last-Minute, Before Its Recess
- Clean Patch for AMT Clears Senate
- Delayed Start to 2008 Filing Season Could Mean Numerous Problems for IRS, Taxpayers
- No Changes Anticipated in Tax Extenders Package
- House Approves One-Year AMT Patch Legislation
- Congress Begins Work on Temporary AMT Patch, Extenders Bill
- Year-End Tax Planning Must Deal with Uncertainty
- Tax Rate Projections for 2008
- Senate Finance Panel Hears Solutions for AMT Problem
- IRS Begins Tax Season With Important Issues Unresolved
- Permanent AMT Fix Poses Difficult Choices
Posted January 14, 2008.
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