President Signs AMT Fix Legislation

On December 26, 2007, the President signed the Tax Increase Prevention Act of 2007. The legislation increases AMT exemption amounts for 2007 to $44,350 for single taxpayers and $66,250 for joint filers. The legislation also extends through 2007 the provision allowing most nonrefundable tax credits for AMT purposes. There are no revenue raising offsets included in the legislation. The legislation is forecast to keep over 20 million taxpayers from being caught by the AMT for the first time in 2007, although the IRS has indicated that the timing of the legislation late in the year is likely to delay processing of returns that include forms affected by the AMT change and delay refunds of 2007 income taxes for up to four million taxpayers.