March 2004

What's New in Taxes

Taxpayer problem identified

3/1/2004 -

The Taxpayer Advocate Service, an independent organization within the IRS, said in its annual report to Congress that the number one problem facing taxpayers is the alternative minimum tax. Originally designed to keep wealthy taxpayers from using deductions and credits to completely eliminate their income tax liability, the AMT now hits more and more middle-income taxpayers. The report recommended that Congress repeal the AMT. If the law is not changed, it's estimated that 30% of all taxpayers will be hit by the AMT by 2010.