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There is tax dramas lawmakers continue to debate how much Americans should pay in the new year.
The acting IRS commissioner now warning tens of millions of returns may not be filed on time but they do not reach a deal Doug -- -- and -- live in DC.
What's the IRS worried about that.
Well bill good morning -- make you realize just how complicated this entire fiscal -- situation is whatever congress does or doesn't do.
That's really only part of the equation here and this letter from the acting IRS commissioner.
Offers a pretty stark warning for congress that if the debate over the fiscal cliff extends into next year.
There could be some pretty big trouble -- here's what he says most taxpayers may not be able to file their 2012 tax returns.
It's a late in march of 2013.
Or perhaps even later eighty to 100 million of the 150.
Million total returns expected to be filed.
May be unable to file and here's why this all comes down to the Alternative Minimum Tax that was created back in 1960 -- To make sure that the wealthy paid more.
Well it was never indexed for inflation so every year congress goes through this deal where they have to create a temporary fix or it would cause a pretty big tax site for millions of taxpayers.
The IRS right now is assuming that the fix will be enacted as it always is but if it isn't.
The IRS can't just turn on a dime their computers in their forms we'll all have to reflect changes in the law and that will take weeks.
Or even months and then let's say there is a deal.
Next -- say in mid January something the entire rest would still have to change everything back at that point so you see how this gets complicated very very quickly.
This is not the first time they RS has warned congress about this right now in effect it's really just kind of an updated but expanded warning I guess an IRS parlance -- -- -- an an amended kind of filing.
They initially thought this would affect about sixty million taxpayers now they've amended that to include about eighty to 100 million.
And we're not just talking about delays in your refund check here although that would happen as well.
This would mean primarily that millions of taxpayers wouldn't even be -- the file because of the insert.
Time's a -- C a dog thank you sir Douglas has built in Washington.
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