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Fiscal cliff taxesU.S. tax authorities warned on Wednesday that as many as 100 million taxpayers - far more than previously estimated - could face refund delays if law makers' "fiscal cliff" negotiations fail to fix the alternative minimum tax (AMT) before year-end.

The Internal Revenue Service said in a letter to lawmakers that it was raising its estimate on AMT impact from 60 million.

"It is becoming apparent that an even larger number of taxpayers - 80 to 100 million of the 150 million total returns expected to be filed - may be unable to file," IRS Acting Commissioner Steven Miller wrote.

The AMT is a levy designed to ensure that high-income taxpayers pay a minimum tax. Democrats and Republican typically agree to adjust the tax for inflation to prevent unintended taxpayers from being hit by it.

This year, however, its fate is tied to heated negotiations - primarily between President Barack Obama and House Speaker John Boehner - over future taxes and federal spending as they try to avoid the automatic tax increases and spending cuts known as the fiscal cliff.

The AMT fix for calculating 2012 income tax has broad bipartisan support, but so far been drowned out by the larger federal budget questions.

Without action soon to fix the AMT, there could be "lengthy delays of tax refunds and unexpectedly higher taxes for many taxpayers," Miller said.

The IRS needs congressional authority to update tax-filing software and forms so that Americans can start their tax returns next year. Inaction by Congress on the AMT has left IRS unsure which taxpayers will need to pay the AMT tax.

An IRS spokesman declined to comment on the agency's AMT preparations to date.

"Failure to act on the fiscal cliff will throw the 2013 tax filing season into chaos," Representative Sander Levin, a Michigan Democrat, said in a statement.

About 4 million taxpayers pay the AMT now because Congress routinely "patches" it for inflation to keep it from reaching down into middle-income tax brackets.

Without a patch for 2012 , up to 33 million taxpayers will have to pay the AMT, according to IRS.

Obama's most recent offer to Republicans included a permanent AMT patch.

House Republicans plan to vote Thursday on a bill to address the fiscal cliff that also includes an AMT patch.

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We need to get rid of the IRS and change our entire tax structure........Flat Tax needs to be implemented

December 24 2012 at 4:21 PM Report abuse rate up rate down Reply

It's only money, folks. And with Obama, it won't be worth anything anyway.

December 23 2012 at 1:39 PM Report abuse +1 rate up rate down Reply

don't overpay in the first place=problem solved

December 23 2012 at 12:35 PM Report abuse +1 rate up rate down Reply

Sounds good but the numbers don't add up. Still have 8 million homeless people wandering around. Still have foreclosed houses on every street. Still have another 8 million unemployed. Still don't have manned space flight.
The US credit rating is still ruined. On and on and on. Instead we have people buying guns and ammo as fast as it can be made. Liquor is selling at $34.00 for 750mml and it sells out, pawn shops are on tv. Before, this was limited to Harlem and other ghettos, now it's all of it.

December 23 2012 at 9:32 AM Report abuse rate up rate down Reply

This is just one reason why I never have the gov owe me, I always owe them. Any good business person knows to use other people's money when possible and do not loan money to anyone taht is in debt Trillions of dollars.

December 21 2012 at 5:36 PM Report abuse +1 rate up rate down Reply

AOLs leftwing extremists are fear mongering again.

December 21 2012 at 11:47 AM Report abuse +2 rate up rate down Reply

We can thank both parties. If these people worked in the real world, they would have been let go long ago. Senior Citizens get a big 1.7% increase and Insurance Goes Up - President takes - SEVEN - HUNDRED - BILLION - DOLLARS FROM - MEDICARE & Medicare & Payments go UP! Supplemental Insurence - has gone UP! Prescription insurance has gone UP! That 1.7% increase has put Senior Citizens in a HOLE - . How much of an increase will the President and the Congress be TAKING - For - Themselves?

Both parties have mismanaged our country into the ground. Thanks - For Nothing Guys & Girls, for once again punishing American Citizens for doing the right thing!!! You have Hundreds of Billions For Countries & People Who Not Only Hate Us & Want Us Dead, But Have Made It Their Business To Kill American Citizens, YET - YOU - REWARD - THEM - BY - TAKING - MONEY - FROM - AMERICAN - CITIZENS - IN - ORDER - TO - GIVE - IT - TO - THEM - !! ---- JUSTICE - ???

December 21 2012 at 11:42 AM Report abuse +4 rate up rate down Reply
Es Bolsa

A pesar de que otras fuentes como Goldman Sachs manejan números ligeramente diferentes, de lo que no cabe duda es que uno de los componentes principales del Fiscal Cliff es el denominado “Payroll Tax Holiday”, seguido por la reducción de impuestos de la era Bush. http://esbolsa.com/blog/bolsa-americana/fiscal-cliff-componentes/

December 21 2012 at 10:26 AM Report abuse -2 rate up rate down Reply
Es Bolsa

El fin de año promete ser movido en EE.UU y cómo no, tendrá su efecto en los mercados europeos. Y es que Santa Claus va a traer dos “regalos” al presidente de los Estados Unidos, el límite de deuda y el “Fiscal Cliff”. Fiscal Cliff o el apocalipsis americano http://esbolsa.com/blog/bolsa-americana/fiscal-cliff/

December 21 2012 at 10:26 AM Report abuse -2 rate up rate down Reply