On November 9, leaders of the House and Senate tax writing committees wrote a letter to the IRS Commissioner, Douglas H. Shulman, pledging to do everything possible to enact alternative minimum tax (AMT) relief for 2010 when Congress returns for its lame duck session on November 15. The lawmakers noted that the AMT patch is essential to providing tax planning certainty to 21 million U.S. taxpayers.
On October 28, 2010, in an Insight titled “What if Congress Fails to Provide an “AMT Patch” For 2010?” we examined the impact that the lack of AMT relief for 2010 would have on U.S. taxpayers. The lawmakers have indicated that proposed legislation would increase the 2010 AMT exemption amounts to $47,450 for single individuals, and to $72,450 for married taxpayers, up from $46,700 and $70,950 respectively, in 2009.
The proposed increase to 2010 exemption amounts will significantly reduce the number of taxpayers that would otherwise be subject to AMT in 2010 if the exemption amounts reverted to statutory levels of $33,750 and $45,000 without the 2010 patch.
We will keep you updated on the tax developments coming from the lame duck session of Congress beginning next week. For inquiries on updates in the meantime, please contact Ron Kramer at firstname.lastname@example.org.
Schneider Downs provides accounting, tax, wealth management, technology and business advisory services through innovative thought leaders who deliver the expertise to meet the individual needs of each client. Our offices are located in Pittsburgh, PA and Columbus, OH.
This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax-related matter.